Consumer debt relief platform Freed raises $2.8 mn in pre-Series A round led by Inflection Point Ventures

Freed, a consumer debt relief platform, has announced it has raised $2.8 mn in a pre-Series A round led by Inflection Point Ventures.

The round saw participation from Multiply Ventures, Chandigarh Angels Network, Lead Angels, Hyderabad Angels, The Chennai Angels, and a clutch of HNIs.

The funds raised will be utilized to bolster the team across verticals, build the tech stack to roll out new and differentiated debt relief products/services to scale up customer acquisition and brand promotion initiatives.

Freed, founded by Ritesh Srivastava, is also building a proprietary credit scoring algorithm for near prime/Alt A borrowers by leveraging data on borrower's behavior during the DSP program. It aims to disrupt and organize the current retail debt settlement market by creating a borrower centric comprehensive platform that solves end-to-end pain points.

Srivastava, Founder and CEO, Freed said, “Freed was founded with a vision to help debt burdened consumers resolve their debt and regain their financial freedom. The problem needed immediate action and Freed will occupy the space of Friend and Financial Resurrector… helping consumers regain normalcy and a sense of balance in their life. IPV has backed some very successful and admirable startups at a very early stage, and we are excited to partner with them in this journey.”

Vinay Bansal, Founder and CEO, Inflection Point Ventures said, "Debt can be stressful and create barriers for future loan requirements. However, with Freed, consumers can clear their personal loans, medical emergency loans and other debt. It is the only debt relief platform in India that enables a person to clear their debt smoothly and even reduces the payment amount with their domain expertise, thus giving the customer a chance to improve their credit rating and ultimately be debt free. IPV aims to extend their support in helping Freed strengthen their services and marketing plan.”

Freed’s Debt Settlement Program also offers personalized budgeting, spend analytics, repayment simulations using AI/ML, debt pay off strategies and credit education to help people avoid debt trap, the statement added.