Freed raises $6.6 million in a round led by Aavishkaar Capital

Debt restructuring platform Freed has secured $6.6 million (Rs 60 crore) in a funding round led by Aavishkaar Capital.

The round also saw participation from existing investors Sorin Investments, Piper Serica, and Sattva Ventures.

The startup plans to use the funds to grow its operations, expand into new regions, improve its technology, and collaborate with financial institutions.

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“Due to a rampant growth in unsecured lending, we have seen significant stress building, especially among younger generations, Gen Zs, and early millennials,” said Ritesh Srivastava, chief executive and founder of Freed.

“We operate on a pull-based model where borrowers seek real help,” Srivastava explained. “Most of these borrowers approaching us are already 90-120 days delinquent. So, they are really facing the heat through aggressive collection calls and are anxious and overwhelmed.”

Shashvat Rai, partner at Aavishkaar Capital, said, “By combining technology, transparent processes and empathetic customer engagement, Freed is addressing a rapidly growing challenge of rising household debt across categories.”

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About Freed 

Founded in 2020 by Ritesh Srivastava, the Gurugram-based Freed helps people manage overdue debt by offering financial counseling, negotiating settlements with lenders and setting up structured repayment plans. The platform currently manages over 1.2 lakh active accounts and has handled more than Rs 3,200 crore in debt.

It also supports borrowers who can repay their loans by arranging consolidation loans through partner lenders. As part of its process, Freed provides financial counseling and has guided over 20 lakh people so far.

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