Gurugram-based debt relief startup Freed announced raising $7.5 million in a new funding round.
Sorin Investments, backed by Sanjay Nayar, and Multiply Ventures, an early-stage venture fund, led the round. Piper Serica Fund and several others also participated.
This marks the second equity investment in Freed. Previously, the company secured a $2.8 million pre-series A round in 2022 from angel investors and Multiply Ventures.
Maple Capital Advisors served as the exclusive advisor for this fundraising round.
“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.
Freed is a startup focused on consumers, aiding them in debt repayment by offering tools for improved financial management. According to Srivastava, in a period marked by a notable increase in consumer lending, Freed’s platform can assist individuals burdened by excessive debt and experiencing collection pressure from lenders.
Nayar from Sorin Investments emphasized that the company’s services provide these individuals with a pathway to resolve their debts, allowing them to lead respectful lives free from the fear of harassment.
With this recent investment, Freed aims to expedite its growth and enhance its influence in the debt relief sector. Established in August 2020, Freed has facilitated over Rs 1,200 crore enrollment in distressed retail debt through its platform, serving more than 25,000 customers nationwide.
