February 2026: Aavishkaar Capital, the investment arm of the Aavishkaar Group, has led a ₹60 Crore (USD 6.6 Mn) investment in FREED, India’s first technology-driven debt relief platform, with participation from existing investors including Sorin Investments (led by Sanjay Nayar), Piper Serica, and Sattva Ventures.
Market Context
- Debt relief is a $50 billion industry in the US and other advanced markets.
- With unsecured retail lending scaling rapidly and household leverage rising in India, FREED is building this category at a defining inflection point.
- As consumer credit penetration deepens, structured and compliant debt resolution is evolving into essential financial infrastructure.
Company Performance
- Founded in 2020, FREED has:
- Counselled 20,00,000+ customers.
- Manages 120,000+ active accounts.
- Overseen ₹3,200+ Crore in debt under management.
- On track to enroll close to $1 billion in stressed debt over the next 18 months, reflecting strong product-market fit.
- Growing at a CMGR of ~19% over the last 12 months with improving unit economics.
Business Model
FREED operates a technology-led, borrower-first model built on behavioral insights, data intelligence, and cash flow-based evaluation.
- For individuals facing genuine hardship:
- Provides financial counselling, negotiated settlements, and structured repayments via trustee-managed special purpose accounts.
- For repayment-capable but stressed borrowers:
- Assesses affordability and facilitates structured consolidation loans through a regulated lending-partner network.
Use of Funds
The fresh capital will be deployed to:
- Scale operations and expand geographic reach.
- Strengthen product and underwriting capabilities.
- Deepen institutional partnerships.
Ritesh Srivastava, Founder & CEO, FREED, said: “At FREED, our mission is to empower individuals trapped in cycles of debt to rebuild their financial health with dignity. This investment strengthens our ability to scale responsible debt relief solutions at a time when household indebtedness is rising sharply across the country. We remain committed to creating transparent, tech-led pathways that give consumers a real chance at financial rehabilitation.”
Shashvat Rai, Partner, Aavishkaar Capital, added: “Strengthening financial resilience is foundational to improving the lives of underserved households. FREED’s mission aligns deeply with our commitment to back solutions that create long-term socio-economic stability. By combining technology, transparent processes, and empathetic customer engagement, FREED is addressing a rapidly growing challenge of rising household debt. Our investment reflects confidence in FREED’s ability to scale a responsible, customer-centric model that restores dignity and reduces financial stress.”
Subeer Monga, Partner, Sorin Investments, said: “Since our initial investment, we’ve seen FREED demonstrate strong traction and disciplined execution. As unsecured credit scales and household leverage rises in India, the need for structured, compliant debt resolution is becoming increasingly clear. Our follow-on investment reflects our belief that FREED is well positioned to build this critical layer of India’s financial infrastructure.”
About FREED
Founded in August 2020, FREED is India’s first technology-driven, borrower-centric debt relief platform.
- Recognized as a DPIIT Startup and Udyam-certified MSME.
- Built on 50+ years of combined founding team experience in the US debt relief industry.
- Helps over-leveraged consumers resolve unsecured debt and regain financial freedom.
- Headquartered in Gurugram, FREED is pioneering the debt relief category in India.
🌐 Website: www.freed.care
About Aavishkaar Capital
Aavishkaar Capital is an impact fund manager focused on the Global South.
- Pioneered an entrepreneurship-based approach to scaling businesses for impact.
- Invested enterprises have impacted 144 million+ lives.
- Invests in high environmental and social impact sectors across India, Emerging Asia, and Africa.
- Aligned to 13 of the 17 UN Sustainable Development Goals (SDGs).
- Raised eight funds with $555 million+ assets under management.
🌐 Website: www.aavishkaarcapital.in
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