The Series A round was led by Sorin Investments and Multiply Ventures, and also saw participation from Piper Serica and others
The startup aims to use the capital to expand its reach and improve its technology
Founded in 2020 by Ritesh Srivastava, FREED leverages technology to provide solutions to individuals to get free of debt
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Fintech startup FREED has raised INR 60 Cr ($7.5 Mn) in its Series A round, led by Sorin Investments and Multiply Ventures.
The round also saw participation from investment company Piper Serica and other institutional funds, FREED said in a statement.
The startup aims to use the capital to expand its reach and improve its technology.
Founded in 2020 by Ritesh Srivastava, FREED leverages technology to provide solutions to individuals to get free of debt.
“At FREED, we are committed to alleviating the burden of debt for individuals across India, and this funding will enable us to further enhance our technology, scale our operations, and ultimately, make a meaningful difference in the lives of many,” Srivastava said.
FREED currently offers two plans – Debt Resolution Programme and Debt Consolidation Programme. Under the Debt Resolution Programme, the startup negotiates with creditors to help individuals get relief in debt amount, while under the consolidation programme, it combines all the debts so that the customers have to pay a single EMI.
The startup claims to have enrolled over INR 1,200 Cr in stressed retail debt on its platform from more than 25,000 customers across India.
Prior to this fundraise, FREED bagged $2.8 Mn in its pre-Series A funding round in 2022.
It competes with the likes of Singledebt, Freeze, DebtBuddy, Credible, and DebtDoctor.
The fundraise comes at a time when the Indian startup ecosystem is reeling under the impact of the ongoing funding winter. The fintech sector has also not remained unaffected from this. Last month, the funding raised by fintech startups crashed to $56 Mn from $289 Mn in February 2023.
Despite this, the fintech sector continues to be a lucrative opportunity for investors, as the country’s fintech market is expected to reach a size of $2.1 Tn by 2030.
Earlier today, clean mobility-focussed fintech platform TapFin raised $4 Mn seed funding.
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