Aavishkaar Capital leads Rs 60 Cr round in debt relief platform FREED
- ByStartupStory | February 26, 2026
Debt relief platform FREED has raised Rs 60 crore (around $6.5 million) led by Aavishkaar Capital. The round also saw participation from existing investors Sorin Investments, Piper Serica and Sattva Ventures.
The new round comes after a gap of two years since its Series A funding of Rs 60 crore led by Sorin Investments and Multiply Venture and others. In May 2022, FREED raised $2.8 million in a pre-Series A round led by Inflection Point Ventures.
The fresh capital will be used to scale operations, expand into new geographies, strengthen underwriting and product capabilities, and deepen institutional partnerships.
Founded in 2020, FREED provides financial counselling, negotiated settlements and structured repayment plans through trustee-managed special purpose accounts. For stressed but repayment-capable borrowers, it facilitates structured consolidation loans via regulated lending partners.
FREED claims to have counselled over 20 lakh customers, manages more than 1.2 lakh active accounts and has overseen over Rs 3,200 crore in debt under management.
The firm is targeting enrollment of nearly $1 billion in stressed debt over the next 18 months. It also claims to have grown at a CAGR of around 19% over the past year, with improving unit economics.
Besides FREED, Loan Settlement, Single Debt, and CreditQ, among others also compete in this segment.
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