BFREE Expands Capabilities with New Growth Round

Nigerian fintech startup BFREE has announced a new growth round of undisclosed funding that will accelerate its pan-African credit-buying business. This investment significantly expands the company’s capacity to acquire distressed loan portfolios and build partnerships across the continent.

The company, founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor, uses AI technology to transform debt management for both borrowers and financial institutions. BFREE focuses on non-performing retail and SME credit, offering a solution that helps lenders manage risk while providing pathways for debtors to resolve their obligations.

The growth round was led by AfricInvest through its Financial Inclusion Vehicle (FIVE), with participation from Algebra Ventures – marking its first investment in a Nigeria-based company – as well as existing investors like Capria Ventures and VestedWorld. The funding will enable BFREE to pursue larger portfolio acquisitions and deepen relationships with institutional partners.

Extensive Data Foundation

Across 35+ transactions and over 11 million borrower accounts, BFREE has built one of the most comprehensive datasets of distressed borrowers in Africa outside traditional credit bureaus. This data informs their underwriting decisions and provides confidence in investment returns.

“The market opportunity is substantial, and this round positions us to acquire larger portfolios with speed and certainty,” said Julian Flosbach, CEO of BFREE.

Strategic Partnerships

Beyond one-off acquisitions, BFREE structures forward flow arrangements with financial institutions – committing to purchase newly non-performing accounts on a recurring basis. These partnerships offer lenders long-term solutions built on responsible engagement practices that prioritize transparency and realistic repayment plans.

“BFREE’s approach addresses an essential gap in the digital lending ecosystem,” noted Patrick Herrmann of AfricInvest. “Their technology-enabled platform allows financial institutions to effectively manage small-ticket non-performing loans, which has become a critical need as digital lending expands across African markets.”

The company is well-positioned to capitalize on this growing demand and further expand its presence across the continent.