FREED has raised ₹60 Cr (approximately $6.6 Mn) in a funding round led by Aavishkaar Capital, with participation from existing investors Sorin Investments, Piper Serica, and Sattva Ventures. The capital infusion, reported across multiple outlets on February 25-26, 2026, aims to scale operations, widen geographic presence, enhance product features, refine underwriting processes, and forge deeper creditor partnerships.
Founded in 2020 by Ritesh Srivastava, FREED operates as a borrower-focused debt relief platform, harnessing AI, ML, and negotiation tactics to help individuals escape debt burdens. Its core offerings span three tailored plans: the Debt Resolution Programme, which bargains with creditors for reduced debt amounts; the Debt Consolidation Programme, merging multiple debts into a single EMI for simpler management; and FREED Shield, a secure tool against collection harassment. The platform has already counselled over 20 lakh customers, manages 1.2 lakh active accounts, and oversees ₹3,200 Cr in debt, with ambitions to onboard $1 Bn in stressed debt within 18 months.
This latest raise follows FREED’s prior ₹60 Cr Series A in 2024, led by Sorin Investments and Multiply Ventures – distinct from its 2022 pre-Series A of $2.8 Mn backed by Inflexion Point Ventures and angel networks. Coverage highlights the opportune timing amid India’s surging household debt and expanding consumer credit, fueling investor optimism in tech-driven debt solutions. Whalesbook noted FREED’s role in tackling national debt woes, while StartupArticle stressed tech upgrades for client liberation.
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The fintech sector’s debt resolution niche is heating up, with peers like AI platform Rezolv ($3.5 Mn seed, 2025) and DPDZero ($7 Mn, August 2025) drawing similar bets. As credit penetration deepens, FREED’s growth trajectory positions it to redefine accessible relief, potentially reshaping how millions navigate financial stress in a high-debt economy.
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