BFREE Raises Growth Funding to Expand Distressed Loan Acquisitions Across Africa

 BFREE, a Nigerian startup focused on acquiring and managing non-performing retail and SME loans, has secured a new round of growth equity funding to expand its distressed credit portfolio business across Africa. The company did not disclose the amount raised.

The Series A round was led by AfricInvest through its Financial Inclusion Vehicle, with participation from Algebra Ventures and existing investors including Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures.

Founded in 2020 by Chukwudi Enyi, Moses Nmor, and Julian Flosbach, the company had previously raised US$10.6 million.

BFREE buys unsecured non-performing loans from banks and fintech lenders, mainly targeting retail consumers and small businesses. The company focuses on markets where traditional debt recovery methods are often inefficient or too costly.

“This round puts us in a position to pursue substantially larger portfolio acquisitions, engage a broader range of institutional partners, and do so with the speed and certainty of execution that serious counterparties demand,” said Flosbach.

Originally launched as a tech-enabled debt collections platform, BFREE has evolved into an institutional purchaser of distressed loan portfolios. The company says it has completed more than 35 transactions and managed over 11 million borrower accounts to date.

The fresh capital will support larger portfolio acquisitions, expansion of forward-flow agreements, and entry into new African markets where digital lending has outpaced debt recovery infrastructure.

“High-velocity digital lending has become a core product across markets, with financial institutions, banks and fintechs alike requiring effective ways to manage small ticket non-performing loans,” said Patrick Herrmann. “BFREE's execution-driven team has brought the platform to an inflection point, enabling it to acquire larger portfolios and strengthen its position as a key partner for banks and fintechs across Africa.”

Distressed consumer and SME debt remains a relatively underserved market in many African economies, where lenders often write off bad loans because of weak legal recovery systems and a lack of active secondary markets for distressed assets.

BFREE uses data gathered from past recoveries to assess portfolio pricing and design repayment strategies for borrowers. The company currently operates in Nigeria, Kenya, and Ghana, though it has not disclosed which additional markets it plans to enter next.