India’s first comprehensive consumer debt relief platform Freed has raised $2.8 million in a pre-series A round of funding from a number of investors. The company, which helps people reduce debt and resolve bad loans, saw participation from Inflection Point Ventures, Multiply Ventures, Lead Angels, Chennai Angels, Hyderabad Angels and Chandigarh Angels Network in the fundraising exercise. Freed plans to use the funds to strengthen its team, develop technology to roll out new debt relief products and acquire more customers.
What does Freed do?
Launched in August 2020, Freed helps subscribers struggling with financial hardship clear their personal loans, credit card loans, medical emergency loans and other debt which they may find difficult to repay due to a sudden job loss or pay cuts or other things.
“Freed was founded with a vision to help debt-burdened consumers resolve their debt and regain their financial freedom,” said Ritesh Srivastava, founder and CEO of Freed.
Using their domain expertise, Freed helps subscribers reduce the payment amount which in turn gives them an opportunity to improve their credit rating and become debt free.
Since its launch, Freed has enrolled over 6,500 consumers with over Rs 350 crore in retail debt. The platform has settled over a thousand accounts with creditors.
How does it work?
Freed uses AI-driven algorithms to evaluate the debt of the subscriber and determine their eligibility. It then creates a customised program as per the budget of the individual and financial goals. The platform also negotiates with creditors while the individual builds his savings.
A customer can get personalised budgeting, spend analytics, repayment simulations using AI/ML and debt pay off strategies from Freed. The platform also offers credit education to help people avoid debt trap in the future.
(Edited by : Sudarsanan Mani)
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