Nigerian credit management fintech startup BFREE has raised a US$1.7 million pre-Series A funding round and strengthened its management team ahead of global expansion.
Founded in August 2020 by Chukwudi Enyi, Moses Nmor and Julian Flosbach, BFREE offers ethical digital-first credit collection solutions for financial institutions in emerging markets. After 16 months in business, the startup now manages collection processes for more than 30 digital lenders, microfinance banks, and commercial banks in Nigeria and Kenya.
Having raised a US$800,000 seed round in May of last year, BFREE has now secured a US$1.7 million pre-Series A round from 4Di Capital, Octerra Capital, VestedWorld, Voltron Capital, Logos Ventures and several unnamed business angels. It will use the new funds for global expansion and to significantly strengthen the management team.
“Interest rates for retail borrowers in emerging markets are still very high, strongly driven by high default rates and lack of infrastructure. With BFREE’s collection product we can decrease default rates which will also lead to a decrease in the borrower’s cost of capital in the long term,” Flosach, BFREE’s chief executive officer (CEO), said.
Chief product officer Moses Nmor said he was excited to continue improving the startup’s collections product, but also to launch other products that will revolutionise credit risk management in emerging markets.
“Access to finance is a key driver of economic development and borrowers deserve lower cost of capital. We will make sure that they get it,” he said.
Anton van Vlaanderen of 4Di Capital said BFREE was his firm’s first investment in Nigeria.
“The company has gained incredible traction very early on, which just shows the huge opportunity in the credit management industry in emerging markets. We are now bullish on their expansion plans into markets such as India, Brazil and Egypt,” he said.