Debt relief startup Freed raises $7.5M led by Sorin Investments, others

Gurugram-based startup Freed has secured $7.5 million in a funding round aimed at expanding its debt relief services.

The round was led by Sorin Investments, backed by Sanjay Nayar, and saw participation from Multiply Ventures, Piper Serica Fund, among others. The funding follows a $2.8 million pre-Series A round in 2022.

What does Freed do?

Founded in August 2020 by Ritesh Srivastava, Freed has carved a niche in the financial sector by assisting over-leveraged consumers. The platform offers innovative solutions for individuals to manage their finances more effectively, aiming to relieve the stress of debt collection.

The startup claims to have helped over 25,000 customers across the country with more than Rs 1,200 crore in stressed retail debt, especially as more people face challenges due to the rise in consumer lending.

What is the purpose of fundraising?

The latest infusion of funds is set to propel Freed's growth and enhance its technological capabilities. 

“This significant investment not only validates the importance of our mission but also provides us with the resources to expand our reach and impact. 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,” said Ritesh Srivastava, founder, Freed.

Competing with other players 

Freed operates in a competitive segment with other players like Loan Settlement, Single Debt, and CreditQ. However, its unique approach and the recent funding position it well for accelerated growth and deeper impact in the debt relief landscape.