FREED Secures $2.8 Mn To Help People Manage Their Debts

SUMMARY

The fresh capital will be used to scale teams across verticals and build tech stack to create new debt relief products for improving customer acquisition and brand promotion initiatives

FREED aims to enroll more than 100K customers in the next two years with an AUM of $500 Mn

FREED has served over 5000 customers, counseled over 24K customers, and settled with over 55 creditors

Gurugram-based fintech startup, FREED has secured $2.8 Mn in a Pre-Series A funding round led by Inflection Point Ventures.

The round saw participation from Multiply Ventures, Chandigarh Angels Network, Lead Angels, Hyderabad Angels, The Chennai Angels, and a cohort of high net-worth individuals.

The fresh capital will be used to scale teams across verticals and build tech stack to create new debt relief products for improving customer acquisition and brand promotion initiatives.

Founded in 2020 by Ritesh Srivastava, FREED helps customers by negotiating and settling their outstanding debt with their creditors. Its offerings include personalised budgeting, spend analytics, repayment simulations using AI and ML, debt pay-off strategies and credit education.

FREED aims to enroll more than 100K customers in the next two years with an AUM of $500 Mn.

As per the website, the startup has served over 5000 customers, counseled more than 24K customers, and settled with over 55 creditors. It claims to have achieved 57% as an average debt reduction.

The startup said it is currently building a credit scoring algorithm for prime borrowers by leveraging data on borrowers’ behaviour during the debt settlement program.