FREED, which calls itself a “debt relief platform”, has raised Rs 60 crore in its Series A funding round led by Sorin Investments, the venture capital firm founded by former KKR India chief Sanjay Nayar.
This is Sorin’s third investment so far. It previously invested in ESG, accounting and reporting consulting services firm Uniqus Consulting Inc. and SaaS-based marketplace for industrial services procurement Venwiz.
The funding round was co-led by FREED’s existing investor Multiply Ventures. Piper Serica and a few other undisclosed investors also participated in FREED’s latest funding round.
The company will use the fresh capital to help “individuals burdened with debt to reclaim financial freedom”, it said in a statement.
FREED, founded in August 2020 and operated by Kavach Financial Services Pvt. Ltd, says it provides “accessible and ethical debt relief” solutions. It claims that it has enrolled more than Rs 1,200 crore in stressed retail debt on its platform from over 25,000 customers across India.
“The investment will provide us with the resources to expand our reach and impact,” said Ritesh Srivastava, founder of FREED.
“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 added.
FREED's platform uses technology-driven solutions to assist individuals in navigating their debt challenges effectively. With this latest investment, FREED is looking to accelerate its growth trajectory, deepen its impact, and continue advancements in the debt relief landscape.
“The company’s offering provides these people with a path to resolve their debts so that they can live their lives respectfully and without any fear of harassment. We are committed to helping build out this new category which sits at the intersection of robust business fundamentals and positive societal impact,” said Nayar, who is the chairman of Sorin Investments.
Prior to this, FREED had raised $2.8 million in its pre-Series A funding round led by Inflection Point Ventures. Multiply Ventures, Chandigarh Angels Network, Lead Angels, Hyderabad Angels, and The Chennai Angels also joined the round.
Maple Capital Advisors was the sole advisor for this fundraise.
