Aavishkaar Capital leads $6.6mn investment into debt-relief platform FREED.
FREED manages ₹3,200cr debt, with 120,000+ active accounts.
Platform expects to enrol $1bn stressed debt in 18 months.
Funding to boost expansion, underwriting and institutional partnerships.
Aavishkaar Capital, the investment arm of Aavishkaar Group, has led a $6.6mn investment in FREED, a technology-based debt relief platform, according to a statement released today. Existing investors Sorin Investments, Piper Serica and Sattva Ventures also participated in the round.
Debt relief is a mature $50bn industry across the US and advanced Western markets. As unsecured retail lending scales rapidly and household leverage rises in India, FREED is building this category at a defining inflection point.
3 February 2026
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Founded in 2020, FREED says it has provided counselling to more than 2 million consumers, manages over 120,000 active accounts, and has overseen more than ₹3,200 crore in debt under management. The company expects to enrol close to $1bn in stressed debt over the next 18 months
The platform uses a model combining financial counselling, negotiated settlements and structured repayment via trustee-managed accounts. For borrowers who are able to repay but face stress, FREED works with regulated lending partners to facilitate consolidation loans based on affordability assessments.
The new capital will be used to expand operations, increase geographic reach, strengthen product and underwriting capabilities, and build institutional partnerships. FREED reported compounding monthly growth of around 19% over the past year.
"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," said Ritesh Srivastava, Founder and CEO of FREED.
Sorin Investments partner Subeer Monga said the firm’s follow-on investment reflects confidence in the company as unsecured lending expands and household leverage increases.
