Debt relief platform FREED secures $7.5M funding led by Sorin Investments, Multiply Ventures

FREED, which helps retail borrowers reduce and manage their debt burden, has raised $7.5 million in Series A round led by Sorin Investments and Multiply Ventures, with participation from Piper Serica and other funds.

"We are thrilled to have secured this significant investment, which not only validates the importance of our mission but also provides us with the resources to expand our reach and impact," said Ritesh Srivastava, Founder of Freed.

"This funding will enable us to further enhance our technology, scale our operations, and ultimately, make a meaningful difference in the lives of many," he added.

The company said it also aims to accelerate its growth trajectory, deepen its impact, and continue pioneering advancements in the debt relief landscape with the latest investment.

Founded in August 2020, FREED claims to have enrolled over Rs 1,200 crore in stressed retail debt on its platform from more than 25,000 customers across India.

FREED charges a monthly subscription fee of Rs 649 to assist overleveraged retailers facing significant financial hardships. It tailors a custom plan for borrowers, aiding them in saving through a special purpose account designated for repayment. Subsequently, it negotiates on their behalf to reduce their debt burden.

“We are excited to work with FREED to help millions of people who struggle with debt due to events outside of their control. The company’s offering provides these people with a path to resolve their debts, so that they can live their lives respectfully and without any fear of harassment. We are committed to help build out this new category which sits at the intersection of robust business fundamentals and positive societal impact," said Sanjay Nayar, Founder and Chairman of Sorin Investments.

Maple Capital Advisors was the sole advisor for this fundraise.