Nigeria’s BFREE Lands USD 3 M To Scale ‘Ethical Debt Recovery’ Across Africa

Lagos-based credit recovery startup BFREE has secured USD 3 M in debt funding from the Verdant Capital Hybrid Fund to expand its acquisition and restructuring of distressed loan portfolios across Africa.

Founded in 2020 by Julian Flosbach. (CEO); Chukwudi Enyi. (COO); and Moses Nmor. (CPO), BFREE is flipping the script on debt collection in Africa, replacing aggressive tactics with AI-powered, borrower-friendly systems.

The startup partners with banks, digital lenders, and microfinance institutions to purchase non-performing loans, then uses proprietary behavioural models and ethical engagement methods to help borrowers repay and rebuild their credit.

The new funding, per a press release seen by WT, will allow BFREE to purchase more written-off loans, a segment traditionally avoided due to poor data, legal hurdles, and outdated collection practices.

BFREE says its platform has already handled over USD 740 M in distressed debt and reached more than 6.6 million borrowers in Nigeria, Kenya, and Ghana.

The investment also gives BFREE access to Verdant Capital’s technical assistance tools, and aligns with the Fund’s mandate to support inclusive financial services in emerging markets.

This is BFREE’s second USD 3 M raise in two years, following an earlier round led by Capria Ventures to promote “ethical microlending.” Lsst year, BFREE also sealed a USD 3 M facility with TLG Capital for its loan collection services.

With mounting scrutiny on debt collection practices across the continent, BFREE’s approach is gaining investor and regulatory attention.

As buy-now-pay-later products and digital lending proliferate, the company is betting that ethical debt resolution, not just loan disbursement, will be central to Africa’s next wave of financial infrastructure.