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Funding · Financial Services

FREED raises ₹60 Cr to expand debt resolution services

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Date
Company
FREED
What it does
Borrower-centric debt relief platform
Kind
Funding
Amount
₹60 Cr ($6.6 Mn)
Stage
Series B
Founded
2020
Sector
Financial Services

What they do

FREED helps individuals resolve debt through negotiation and consolidation programs

What happened

The company raised ₹60 Cr led by Aavishkaar Capital for expansion

Why it matters

It manages over ₹3,200 Cr in debt and counsels 20 lakh customers

The details

  • FREED has raised ₹60 Cr in a new funding round.
  • Aavishkaar Capital led the investment round for the startup.
  • Sorin Investments, Piper Serica, and Sattva Ventures participated in the deal.
  • The funds will be used to scale operations and expand geographic reach.
  • FREED aims to strengthen its product offerings and underwriting capabilities.
  • The company plans to deepen partnerships with financial institutions.
  • This follows a previous Series A of ₹60 Cr raised in 2024.
  • Investors remain bullish on the fintech sector amid credit growth.

The bigger picture

  • Deepening consumer credit penetration drives growth in the debt resolution segment.
  • FREED targets stressed debt to help borrowers manage financial burdens.
  • The market is seeing increased activity from AI-powered debt startups.

About the business

  • FREED operates as a borrower-centric debt relief platform.
  • It leverages technology to provide individual debt solutions.
  • The Debt Resolution Programme negotiates with creditors for amount relief.
  • The Debt Consolidation Programme combines debts into a single EMI.
  • FREED Shield resolves collection harassment safely and securely for users.
  • The company has counselled over 20 Lakh customers so far.
  • It currently manages over 1.2 Lakh active accounts.
  • The total debt under management exceeds ₹3,200 Cr.
  • FREED aims to enroll close to $1 Bn in stressed debt.

What happens next

  • FREED aims to enroll close to $1 Bn in stressed debt.
  • The goal is to achieve this target over the next 18 months.

The deal

Type
funding

Investors

Founders

  • Ritesh Srivastava, Founder

About FREED

Product
Debt Resolution Programme, Debt Consolidation Programme, and FREED Shield for debt relief and collection harassment resolution
Customers
Over-leveraged consumers trapped in debt cycles seeking relief and financial restructuring
How it makes money
Technology-led model with behavioral insights, data intelligence, and cash flow-based evaluation for negotiated debt relief
What sets it apart
Combines negotiated settlements, structured consolidation loans, and structured repayment through trustee-managed accounts

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