Debt resolution platform FREED has secured Rs 60 crore (approximately $6.5 million) in a fresh funding round led by Aavishkaar Capital. The round also saw participation from existing backers Sorin Investments, Piper Serica, and Sattva Ventures.
This marks the company’s first fundraise in two years, following its Series A round of Rs 60 crore led by Sorin Investments and Multiply Venture, among others. Earlier, in May 2022, FREED had raised $2.8 million in a pre-Series A round led by Inflection Point Ventures.
Funds to Support Expansion and Product Strengthening
According to the company, the newly raised capital will be used to scale its operations, enter new geographies, enhance underwriting systems, and strengthen product capabilities. FREED also plans to deepen partnerships with institutional players as it expands its footprint in the debt management space.
Helping Borrowers Manage Stressed Debt
Founded in 2020, FREED offers financial counselling, negotiated settlements, and structured repayment plans. The company operates through trustee-managed special purpose accounts to ensure transparency in repayments.
For borrowers who are stressed but still capable of repayment, FREED facilitates structured consolidation loans through regulated lending partners, helping them manage multiple liabilities more efficiently.
The startup claims to have counselled more than 20 lakh customers so far. It currently manages over 1.2 lakh active accounts and has handled more than Rs 3,200 crore worth of debt under management.
Growth Plans Ahead
Looking forward, FREED aims to enroll nearly $1 billion in stressed debt over the next 18 months. The company also reports a compound annual growth rate (CAGR) of around 19 percent over the past year, along with improving unit economics.
The debt relief and settlement segment is seeing rising activity, with players such as Loan Settlement, Single Debt, and CreditQ operating in the same space. With fresh capital in place, FREED is now focused on strengthening its position in India’s growing debt resolution market while expanding access to structured repayment solutions for financially stressed borrowers.
-By Shivani Solanki
