FREED Raises $2.8 Million In Pre-Series A The funds will be used to build the tech stack to roll out new debt relief services
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FREED, a debt relief platform, has raised $2.8 million in pre-Series A funding round led by Inflection Point Ventures (IPV). The round also witnessed participation from Multiply Ventures, Chandigarh Angels Network, Lead Angels, Hyderabad Angels and The Chennai Angels. The fund raised will be utilized to bolster the team across verticals, build the tech stack to roll out new and differentiated debt relief services to scale up customer acquisition and brand promotion initiatives .
"FREED was founded with a vision to help debt burdened consumers for resolving the debt and regaining their financial freedom. The problem needed an immediate action and FREED will occupy the space of a financial resurrector, helping consumers regain the normalcy and a sense of balance in their life," said Ritesh Srivastava, founder and CEO, FREED.
FREED has enrolled more than 6,500 consumers with INR 350 crore in retail debt and settled thousands of accounts with creditors, offering debt reduction to consumers and resolution of bad debt for creditors. The platform is attempting to solve a $15 billion non-performing assets problem. The current retail unsecured loan book has surpassed $160 billion and is growing at 12 per cent CAGR, claimed by the company in a statement.
"Debt can be stressful and create barriers for future loan requirements. However, with FREED, consumers can clear their personal loans, medical emergency loans and other debt. IPV aims to extend their support in helping FREED strengthen their service and marketing plan," said Vinay Bansal, founder and CEO, IPV.
Founded in 2020 by Ritesh Srivastava, FREED is a consumer-facing platform that aims to bring borrowers seeking debt resolution and lenders on a neutral platform to amicably resolve the debt. It also offers personalised budget, spending analytics, repayment simulations using AI, debt pay off strategies and credit education.