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Bfree raises $3.1 million to buy distressed loan portfolios
Nigerian credit management startup Bfree has raised $3.1 million from undisclosed investors to move into buying and recovering distressed loan portfolios.
By Propel Africa · 2026-04-21
Bfree, a credit management startup, has raised $3.1 million from undisclosed investors, Launchbase Africa reported on 21 April.
What Bfree does
Bfree buys and restructures distressed loan portfolios. It uses machine learning to assess a borrower's capacity to repay, and automated bots and self-service portals to engage them. The company says it avoids late fees, debt blacklisting and heavy penalties. It was founded in 2020 by Julian Flosbach, Chukwudi Enyi and Moses Nmor. Flosbach is CEO. He describes the aim as "developing solutions that help distressed borrowers get back on their feet while empowering lenders."
Scale
Bfree says it has handled more than $740 million in distressed loans and interacted with about 6.6 million borrowers. It serves more than 30 financial institutions, from digital micro-lenders to regulated commercial banks, across Nigeria, Ghana and Kenya. It has raised more than $12 million in debt and equity since 2020. Earlier backers include Capria Ventures, which led a $2.95 million equity round in 2024.
What changes next
The new money will fund a shift from software-as-a-service collections to buying written-off or delinquent loans and managing recovery in-house.
At a glance
- Company: Bfree
- Raised: $3.1 million
- Founded: 2020
- Markets: Nigeria, Ghana, Kenya
- Raised since 2020: More than $12 million
- Key figure: More than $740 million in distressed loans handled