Aavishkaar Capital Leads INR 60 Crore Investment in FREED to Scale India’s Debt Relief Category

Aavishkaar Capital, the investment arm of Aavishkaar Group, has led the INR 60 Crore (USD 6.6 Mn) investment in FREED, India’s first technology-driven debt relief platform, with participation from existing investors, Sanjay Nayar led Sorin Investments, Piper Serica and Sattva Ventures.

Debt relief is a mature $50 billion 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. With consumer credit penetration deepening, structured and compliant debt resolution is no longer optional, it is becoming essential financial infrastructure. 

Founded in 2020, FREED has counselled over 20,00,000 customers, manages 120,000+ active accounts and has overseen INR 3,200+ Crore in debt under management. The company is on track to enroll close to $1 billion in stressed debt over the next 18 months, reflecting strong product-market fit in a large and underpenetrated segment.

FREED operates a technology-led, borrower-first model built on behavioral insights, data intelligence and cash flow-based evaluation. For individuals facing genuine financial hardship, the platform enables financial counselling, negotiated settlements and structured repayments through trustee-managed special purpose accounts. For repayment-capable but stressed borrowers, FREED assesses affordability and facilitates structured consolidation loans through a regulated lending-partner network.

The fresh capital will be deployed to scale operations, expand geographic reach, strengthen product and underwriting capabilities, and deepen institutional partnerships. The Company has been growing at a CMGR of ~19% in the last 12 months with improving unit economics.Ritesh Srivastava, Founder and CEO of 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 at Aavishkaar Capital, added: “At Aavishkaar Capital, we believe that strengthening financial resilience is foundational to improving the lives of underserved households. FREED’s mission to help individuals tackle indebtedness 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 across categories. Our investment reflects our confidence in FREED’s ability to scale a responsible, customer-centric model that restores dignity, reduces financial stress, and enables people to rebuild their financial futures.”

Subeer Monga, Partner at Sorin Investments said, “Since our initial investment, we’ve seen FREED demonstrate strong traction and disciplined execution, reinforcing our conviction in the model and the team. 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 help build out this critical layer of India’s financial infrastructure.”

As India’s consumer credit ecosystem matures, structured debt resolution is poised to become an integral component of financial infrastructure. FREED is positioning itself at the forefront of this shift, building a scalable, compliant and technology-led platform designed to restore financial stability on a scale.