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Bfree , a tech - enabled debt assembling startup based in Nigeria , was founded to automatize and inaugurate honorable debt recovery process after its laminitis find the use and adverse effects of belligerent retrieval techniques , such asincessant calling and debt - shaming , by predatory digital lenders .
After its launch in 2020 , the startup introduced a number of scalable debt convalescence methods , include a ego - servicing political platform , which allows borrower to set up raw payment plan , and colloquial AI tools ( chatbots and callbots ) , as part of its compendium - as - a - Robert William Service offer . These tools ensure humane after - sales services for borrowers and action based on behavioral and fiscal data .
Over the days , its customer - base has spring up to include some of the major banks in Ghana , Kenya and Nigeria , where it plans to persist in scaling , backed by the $ 2.95 million fresh funding it has just batten in a rung leave by Capria Ventures . Angaza Capital , GreenHouse Capital , Launch Africa , Modus Africa , Axian CVC and a figure of angel investor also participated in the rung that brought the total support raised to $ 6.5 million , include last year ’s undisclosed $ 1.1 million bridge deck round .
Julian Flosbach(CEO ) , who co - founded the startup withChukwudi Enyi(COO ) andMoses Nmor(CPO ) , evidence TechCrunch that while Bfree started out with digital lenders , which he says are immediate to dramatise its product , they presently only cultivate with a smattering of them , as their key focus is on banks , which contribute up to 70 % in revenues .
“ Because of the immense pressure to increase our margins , we essentially had to either increase pricing or let go of a lot of modest customer , ” said Flosbach , add together that it makes business sense to sour with banks because of their bombastic loan portfolios compared to digital lenders . The startup currently help 14 customers , although it has worked with 45 since launching .
Bfree say 92 % of its interaction with client are amply automatise but has maintained a call centre , man by a small team , for when customer call or for follow - ups that require phone calls . It also launch a loan collection management SaaS dub Workflow , which point companies with in - business firm compendium teams or those that are not keen to outsource .
The startup is arguably the only tech - enable quotation convalescence troupe across Africa , where aggregator continue to heavily bank on traditional options like call centers to watch up on settlements .
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Bfree to create secondary market for loans
Its current loanword portfolio stands at over $ 400 million , out of which it has pull off to collect 12.5 % .
The startup also plan to make a secondary debt market to allow third - party investor like hedge funds , looking to radiate their investments , to corrupt non - performing loans ( NLPs ) from banks in Africa . Debt buyers purchase loanword from coin bank at a fraction of the debt ’s aspect economic value and make profit from collection . Banks sell NLPs to minimize their peril , finagle loan portfolio and exempt up funds .
“ We collect so much datum of borrower , peculiarly default borrower . We were able for the first prison term to actually develop an algorithm that can value these plus . We can predict how much is a loan that has not been pay back , let ’s say for 90 day ; how likely is it rifle to be yield back over the next one year . Then we go to coin bank and corrupt these assets and take them off their balance sheets , allowing them to offload the risk , ” say Flosbach .
He added that they also have an analytics solution for banks to help them pull ahead penetration into secondary debt market .
Commenting on the investment , Susana García - Robles , contend partner at Capria Ventures , a Global South specialiser VC firm investment in hold productive AI , say : “ The advent of generative AI provides a tract for more efficient scaling , enabling the company to extend across the continent at a reduced cost . Bfree is well - positioned to play a crucial theatrical role in improving availableness and mitigating endangerment in financial inspection and repair .
“ We foresee the growing prominence of credit management and are confident that Bfree will spearhead the creation of a secondary market on the continent for distressed assets . Bfree has secure significant partnerships with top - tier banking company and fintechs , avow the effectivity of its product and reinforcing our feeling in its potential to transform credit collection in Africa , ” said García - Robles .
As the startup branch out its offer , it has alsoslowed down its aggressive expanding upon plans announce two year ago , when speculation capital flowed freely and “ growth at all toll ” was the mantra , to center on its three key markets in Africa . This is upon the cognizance of variegate market dynamic , and the realisation that every market postulate unlike approaches and intersection .
