Aavishkaar Capital led the debt alleviation platform FREED in raising Rs 60 crore, or roughly $6.5 million. Current investors Sorin Investments, Piper Serica, and Sattva Ventures also participated in the round.

Key Highlights

• FREED secured ₹60 crore funding led by Aavishkaar Capital to expand debt relief solutions nationwide.
• The investment will strengthen technology, customer outreach, and scalable financial wellness programs for stressed borrowers.

Two years have passed since the company's Rs 60 crore Series A funding round, which was led by Sorin Investments, Multiply Venture, and other investors. In a pre-Series A round headed by Inflection Point Ventures, FREED raised $2.8 million in May 2022.

Scaling operations, entering new markets, improving underwriting and product capabilities, and strengthening institutional relationships are all planned uses for the additional funding.

FREED was established in 2020 and uses trustee-managed special purpose accounts to offer structured payback programs, financial counseling, and negotiated settlements. It provides structured consolidation loans through regulated lending partners to borrowers who are under stress but are able to repay their debts.

In addition to managing over 1.2 lakh active accounts and overseeing over Rs 3,200 crore in debt under management, FREED claims to have counseled over 20 lakh clients.

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Over the following 18 months, the business hopes to enroll around $1 billion in stressed debt. Additionally, it asserts that its unit economics have improved and that it has grown at a CAGR of almost 19% over the last 12 months.

In addition to FREED, additional competitors in this market include Loan Settlement, Single Debt, and CreditQ.