Bfree's current loan portfolio stands at over $400 million, and it has managed to collect 12.5% of this. The startup also plans to create a secondary debt market, allowing third-party investors to buy non-performing loans from banks in Africa. The company also offers an analytics solution for banks to gain insights into secondary debt markets. The startup has slowed down its aggressive expansion plans to concentrate on its three key markets in Africa.
Key takeaways:
- Bfree, a Nigerian startup, has secured $2.95 million in a funding round led by Capria Ventures, bringing its total funding to $6.5 million. The startup uses tech-enabled methods for ethical debt recovery, including a self-service platform and AI tools.
- The startup's customer base includes major banks in Ghana, Kenya, and Nigeria, contributing up to 70% in revenues. Bfree has worked with 45 customers since its launch, with 92% of its interactions being fully automated.
- Bfree plans to create a secondary debt market, allowing third-party investors to buy non-performing loans from African banks. The startup has developed an algorithm to value these assets and predict their likelihood of being paid back.
- Despite initial aggressive expansion plans, Bfree has slowed down to focus on its three key markets in Africa, recognizing the need for different approaches and products for each market.