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Friday, March 1, 2024

Nigerian: Fintech start-up BFREE raises $1.7 million in pre-series funding

BFREE, a Nigerian credit management fintech business has received a pre-Series A fundraising round of US$1.7 million and reinforced its management team in preparation for worldwide development. 

BFREE, founded in August 2020 by Chukwudi Enyi, Moses Nmor, and Julian Flosbach, provides financial institutions in emerging areas with ethical digital-first credit collection solutions. The firm currently oversees collection operations for more than 30 digital lenders, microfinance banks, and commercial banks in Nigeria and Kenya after 16 months in business.  

BFREE has obtained a US$1.7 million pre-Series A investment from 4Di Capital, Octerra Capital, Vested World, Voltron Capital, Logos Ventures, and numerous undisclosed business angels, after a US$800,000 seed round in May of last year. The fresh cash will be used to expand globally and greatly boost the management team. 

“In emerging nations, interest rates for retail borrowers are still relatively high, owing to high default rates and a lack of infrastructure. We can reduce default rates using BFREE’s collection solution, which will lower the borrower’s cost of capital in the long run,” said Flosach, BFREE’s chief executive officer (CEO).  

Moses Nmor, the startup’s chief product officer, expressed excitement about not just continuing to improve the startup’s collections product, but also launching new products that would revolutionize credit risk management in emerging economies. 

“Borrowers deserve reduced cost of capital since access to credit is a crucial driver of economic progress. We’ll make certain they get it,” he stated. 

BFREE was 4Di Capital’s first investment in Nigeria, according to Anton van Vlaanderen. 

“The firm has gotten a lot of traction very quickly, which simply goes to illustrate how big the credit management sector in emerging economies is. We’re now optimistic about their aspirations to expand into areas like India, Brazil, and Egypt,” he added.  

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