Debt relief platform FREED raises Rs 60 crore to help Indians regain financial freedom

Debt relief platform FREED has raised Rs 60 crore in a Series A2 funding round led by Aavishkaar Capital, with participation from existing investors Sorin Investments, Piper Serica and Sattva Ventures.

Founded in 2020 by Ritesh Srivastava, FREED helps over-leveraged consumers resolve unsecured debt and regain financial freedom, with the right guidance and support at every step.

The Gurugram-based startup claims to have counselled over 20,00,000 customers and currently manages 120,000+ active accounts and has overseen Rs 3,200+ crore in debt under management.

It is on track to enrol close to $1 billion in stressed debt over the next 18 months. FREED operates a technology-led, borrower-first model built on behavioural insights, data intelligence and cash flow-based evaluation.

“At FREED, our mission is to empower individuals trapped in cycles of debt to rebuild their financial health with dignity. This investment strengthens our ability to scale responsible debt relief solutions at a time when household indebtedness is rising sharply across the country. We remain committed to creating transparent, tech-led pathways that give consumers a real chance at financial rehabilitation,” said Ritesh Srivastava, who is also the CEO of FREED.

Mohit Nichani, CFO of FREED, said, “The business is showing strong operating leverage and has been delivering robust financial performance over the last few quarters with a clear path to profitability.”

Shashvat Rai, Partner at Aavishkaar Capital, said, “At Aavishkaar Capital, we believe that strengthening financial resilience is foundational to improving the lives of underserved households. FREED’s mission to help individuals tackle indebtedness aligns deeply with our commitment to back solutions that create long-term socio-economic stability. By combining technology, transparent processes, and empathetic customer engagement, FREED is addressing a rapidly growing challenge, of rising household debt across categories.”