Bfree raises $3M to tackle distressed loans and boost financial inclusion in Africa

Nigerian fintech secures funding to acquire non-performing loan portfolios and improve recovery strategies across the continent.

Bfree, a Nigerian fintech start-up specializing in AI-driven digital credit recovery, has secured $3 million in funding from Verdant Capital’s Hybrid Fund. The investment will support the acquisition and management of distressed loan portfolios from inclusive financial institutions across Africa.

In addition to the funding, Bfree will also benefit from Verdant Capital’s technical assistance initiatives aimed at strengthening financial inclusion.

According to Verdant Capital, the distressed loan market in Africa remains largely untapped due to challenges such as poor recovery mechanisms, unreliable data for portfolio valuation, loan transfer complications, price discrepancies, and slow legal processes. Bfree’s technology-based recovery platform offers a scalable and transparent solution to address these systemic issues in retail and SME lending.

The company’s proprietary pricing model uses internal data to predict repayment performance, enabling more accurate valuation and risk management of distressed portfolios.

Since its launch five years ago, Bfree has reached over 6.6 million borrowers across multiple African markets, managing an estimated $740 million in loan volume. By purchasing portfolios that would otherwise be written off, the company injects fresh capital and liquidity into the financial ecosystem, allowing institutions to refocus on lending activities.

Verdant Capital emphasized that the investment aligns with its return objectives while advancing impactful financial inclusion efforts in emerging markets.