BFREE closed a growth funding round on May 6th 2026, led by AfricInvest through its Financial Inclusion Vehicle. Algebra Ventures joined as a new investor, making its first investment into a Nigeria-headquartered company, alongside existing backers Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures, together with a number of strategic individual investors. The size of the round was not disclosed.

Founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor, BFREE began as a technology-led collections servicer, using machine learning and behavioural data to restructure defaulted consumer loans on negotiated timelines rather than through the aggressive tele-calling that has drawn regulatory criticism across the continent. It now buys non-performing loan portfolios outright, taking them off lenders' books and working them out on its own account.

That shift rests on data the company accumulated by doing the servicing work first: more than 11 million borrower accounts and over 35 closed transactions, amounting to one of the most extensive proprietary datasets on distressed unsecured borrowers on the continent.

“This round puts us in a position to pursue substantially larger portfolio acquisitions and engage a broader range of institutional partners,” said Flosbach. Patrick Herrmann, a Partner at AfricInvest, said the team had “brought the platform to an inflection point, enabling larger portfolio purchases”. Omar Kashaba of Algebra Ventures framed the opportunity: “Billions of dollars in African retail and SME credit go unresolved yearly because institutional infrastructure to clear them does not exist.”

Proceeds go towards larger acquisitions, deeper forward-flow partnerships, and entry into further markets. The round follows a $2.95 million equity round led by Capria in early 2024 and debt facilities from TLG Capital and Verdant Capital.

Congratulations to Julian, Chukwudi, Moses, and the BFREE team. We have backed them since 2021 and are delighted to welcome AfricInvest and Algebra to the table.