Bfree is a tech-enabled debt collection startup based in Nigeria, founded to revolutionize debt recovery processes with automation and ethical practices. The founders, after witnessing the harmful effects of aggressive techniques used by predatory digital lenders, decided to introduce a more humane approach.
Since its launch in 2020, Bfree has implemented innovative debt recovery methods such as a self-service platform for borrowers to set up payment plans, and conversational AI tools like chatbots and callbots. These tools prioritize borrower experience and decision-making based on behavioral and financial data.
With a growing customer base that includes major banks in Ghana, Kenya, and Nigeria, Bfree secured $2.95 million in fresh funding led by Capria Ventures. Other participants in this round, which brought the total funding raised to $6.5 million, include Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and several angel investors.
Julian Flosbach (CEO), Chukwudi Enyi (COO), and Moses Nmor (CPO) co-founded Bfree. Flosbach emphasized that while the startup initially targeted digital lenders, they now focus primarily on banks due to their substantial revenue contribution.
Currently serving 14 customers, Bfree has successfully automated 92% of its interactions, maintaining a small call center for customer calls and follow-ups. The startup also introduced a loan collection management SaaS called Workflow to cater to companies with in-house collection teams.
Bfree aims to create a secondary debt market to allow third-party investors to purchase non-performing loans from African banks. By leveraging data and analytics, Bfree can accurately predict the value of these assets and assist banks in managing their loan portfolios efficiently.
Bfree’s Innovations and Future Plans
Bfree has managed a loan portfolio exceeding $400 million and collected 12.5% of it. The startup’s long-term strategy includes concentrating on key markets in Africa and diversifying its offerings to ensure sustainable growth and tailored solutions for different market dynamics.
Capria Ventures, a Global South specialist VC firm, highlighted Bfree’s potential to transform credit collection in Africa through its innovative approach and partnerships with top-tier banks and fintech companies. The utilization of generative AI technology is expected to facilitate Bfree’s expansion across the continent at a reduced cost.
As Bfree continues to evolve and refine its services, it remains committed to improving accessibility, mitigating risk in financial services, and pioneering the development of a thriving secondary market for distressed assets in Africa.
