Debt relief platform FREED has raised Rs 60 crore ($6.6 million) in a funding round led by Aavishkaar Capital to expand its operations and geographic footprint across the country.
The investment round also saw participation from existing investors Sorin Investments, Piper Serica, and Sattva Ventures. The Gurugram-based company stated it plans to deploy the fresh capital to scale operations, strengthen its product and underwriting capabilities, and deepen its institutional partnerships.
"This investment strengthens our ability to scale responsible debt relief solutions at a time when household indebtedness is rising sharply across the country," said Ritesh Srivastava, Founder and CEO of FREED in a press note.
Founded in August 2020, FREED operates a technology-led platform that evaluates borrowers based on cash-flow data and behavioral insights. The platform provides financial counseling, negotiated debt settlements, and structured repayments through trustee-managed accounts. For repayment-capable borrowers, the company facilitates structured consolidation loans via a network of regulated lending partners.
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The company currently manages more than 120,000 active accounts with over Rs 3,200 crore in debt under management. Operating in a market experiencing rapid growth in unsecured retail lending, FREED reported a compound monthly growth rate of approximately 19% over the past year and expects to enroll close to $1 billion in stressed debt over the next 18 months.
“Since our initial investment, we’ve seen FREED demonstrate strong traction and disciplined execution, reinforcing our conviction in the model and the team. As unsecured credit scales and household leverage rises in India, the need for structured, compliant debt resolution is becoming increasingly clear. Our follow-on investment reflects our belief that FREED is well positioned to help build out this critical layer of India’s financial infrastructure," added Subeer Monga, Partner at Sorin Investments.
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