Debt Relief Platform FREED Secures Rs 60 Crore for Expansion

Debt relief platform FREED has successfully raised Rs 60 crore, approximately $6.5 million, with Aavishkaar Capital leading the investment. The funding round also included participation from existing investors such as Sorin Investments, Piper Serica, and Sattva Ventures. This new financial influx arrives two years after a Series A funding round of Rs 60 crore that was led by Sorin Investments and Multiply Venture, among others.

In May 2022, FREED had raised $2.8 million during a pre-Series A round that was spearheaded by Inflection Point Ventures. The newly acquired capital is earmarked for scaling operations, entering new geographical markets, enhancing underwriting and product capabilities, and strengthening institutional partnerships.

About FREED

Established in 2020, FREED is dedicated to providing financial counselling, negotiated settlements, and structured repayment plans via trustee-managed special purpose accounts. For borrowers who are stressed but capable of repayment, it facilitates structured consolidation loans through regulated lending partners.

Performance and Growth

FREED claims to have counselled over 20 lakh customers, managing more than 1.2 lakh active accounts and overseeing more than Rs 3,200 crore in debt under management. The firm is ambitiously targeting the enrollment of nearly $1 billion in stressed debt over the upcoming 18 months. They also report having grown at a compound annual growth rate of approximately 19% over the past year, alongside improving unit economics.

Competitors

In addition to FREED, companies like Loan Settlement, Single Debt, and CreditQ also operate within this competitive segment.