Headquartered in Lagos, the company works with banks, fintechs and other lenders to acquire and manage non-performing retail and SME loans. 

The latest round drew support from several African private equity and venture capital firms, including AfricInvest through its Financial Inclusion Vehicle fund, as well as Algebra Ventures, which made its first investment in a Nigeria-headquartered business through the deal.

Existing investors, including Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital and DotExe Ventures, also returned for the round.

BFREE said the new investment will help it pursue larger acquisitions of bad debt portfolios while strengthening long-term agreements with financial institutions that regularly offload non-performing accounts.

Having raised $3 million in funding in 2024, the company started as a technology-driven debt collection business before shifting into direct acquisitions of distressed unsecured loans, ranging from nano credit to SME facilities. 

Since launch, BFREE has completed more than 35 transactions and now manages over 11 million borrower accounts across several African countries.

Chief Executive Officer Julian Flosbach said the company now plans to operate at a larger scale.

“The market opportunity is significantly larger than the infrastructure historically available to address it. This round puts us in a position to pursue substantially larger portfolio acquisitions, engage a broader range of institutional partners, and do so with the speed and certainty of execution that serious counterparties demand,” he said.

Rather than handling one-off recoveries, BFREE works through forward flow arrangements. Under those deals, lenders agree to sell newly non-performing loans to the company on a recurring basis.

BFREE said its collection model avoids intimidation and public shaming, practices that have long attracted objection in parts of Africa’s digital lending sector. Instead, it focuses on repayment structures that borrowers can realistically manage.

Patrick Herrmann, partner at AfricInvest, said the company is filling an important gap in Africa’s fast-growing digital credit market.

“BFREE’s approach to credit management, based on a unique set of proprietary data and a technology-enabled collection platform, closes an essential gap in the digital lending value chain. 

“High-velocity digital lending has become a core product across markets, with financial institutions, banks and fintechs alike requiring effective ways to manage small-ticket non-performing loans. 

“BFREE’s execution-driven team has brought the platform to an inflexion point, which will enable them to purchase larger portfolios and become a prime partner for banks and fintechs across African markets,” he said.

For Omar Khashaba, general partner at Algebra Ventures, the investment shows encouraging interest in Africa’s distressed debt market, where lenders still struggle to resolve billions of dollars in unpaid retail and SME loans every year.

“Billions of dollars in African retail and SME credit go unresolved every year because the institutional infrastructure to clear them simply does not exist. Healthy credit markets need a disciplined buyer for distressed debt. 

“The founders Julian, Moses and Chukwudi have built a platform that combines rigorous portfolio pricing, risk management, and deep data infrastructure to clear distressed retail and SME debt at scale. We are backing BFREE together with AfricInvest to scale them across Africa and beyond,” he said.

BFREE did not disclose the size of the investment round. However, the company said the capital will support expansion in both existing and new African markets where demand for distressed debt solutions continues to grow.

He made this known today, Thursday, December 4, at the ongoing Art of Technology Lagos 7.0, holding at the Landmark Event Centre.

Themed “Future Technologies & a Sustainable Lagos”, AOT Lagos 7.0 marks seven years of bringing together the city’s full innovation ecosystem, including founders, developers, entrepreneurs, financiers, academia, and policy-makers. 

Over those years the state has built a solid and broad infrastructure. “We are the de facto IT department for Lagos State,” Alake said, “managing connectivity, data centres, ERP systems, smart-city implementation, and driving public-service digitisation through government.”

Among the State’s achievements he disclosed that between 2019 and 2024, Lagos-based tech startups attracted over $6 billion in funding, representing more than 70% of Nigeria’s total tech investment inflows. 

Alake said that today the ecosystem is roughly valued at $15.3 billion, with Lagos accounting for 80–90% of the country’s startups, making it “the largest startup concentration on the continent.”

He explained how the state government is supporting this boom. Through Lagos State Science Research and Innovation Council (LASRIC), more than 75 startups have been funded, and over 85 research and development initiatives across four to five major universities are currently supported. 

Some of these initiatives have already produced commendable results, including research patents and spin-off companies in areas like climate resilience, green energy, agritech and construction tech.

In addressing infrastructure, Alake disclosed that Lagos now has about 15,000 kilometres of fibre-optic cables, having expanded connectivity by roughly 500 km per year on average. 

This fibre backbone supports public schools, hospitals, government buildings and businesses, a foundation for a truly digital Lagos.

On the public-service side, Alake pointed to the success of the Lagos State Digital Service Portal, launched at last year’s AOT. The portal has recorded over 50,000 unique visitors in the past 60 days alone, enabling citizens to file taxes, apply for planning permits or digital identity, and access other government services online. 

He said work is underway to enhance the portal into a unified gateway for all citizen and business services.

At AOT 7.0, Alake also announced the forthcoming Lagos Innovation Bill, a legal and regulatory framework designed to embed innovation in the state’s economic DNA. 

Once passed, the Bill will, among other things, require large companies in sectors such as telecoms, energy and infrastructure to collaborate with universities and research institutions when seeking solutions. 

For example, building local capacity to design base stations rather than importing equipment.

By 2030, Lagos plans to increase the contribution of IT and innovation to the state economy by 100%, and stimulate a 50% rise in scientific research and invention directed at solving Lagos-specific challenges. 

Alake said, “If you have a technical problem, Lagos is the place to solve it,” stressing that this vision requires “coordination, collaboration, and all of us, working hard, putting aside differences, and moving on shared vision.” 

He called on everyone in the ecosystem, including the government, private sector, academia, investors, and citizens, to contribute.

The ultimate goal is to make innovation a permanent feature of Lagos’ economic and social life.

The ceremony, held on Friday, November 21, in Lagos, brought together investors, industry leaders, media, and entrepreneurs to celebrate startups enhancing local industries and strengthening Africa’s footprint in global commerce. 

The winners, Dingpay, Aquatrack, and Growwr, were presented with cash prizes ranging from $2,000 to $10,000, alongside access to international suppliers and the infrastructure to scale beyond local markets.

Dingpay, a fintech innovator creating an “offline-first” digital wallet that consolidates bank cards, identity documents, tickets, and payments, claimed the $10,000 grand prize. 

Speaking on the win, co-founder Itohowo Udofia said, “We are honoured to be recognised as the winner of the Verto Award. This prize will enable us to scale faster, strengthen our operations, and unlock new market opportunities. It’s an incredible validation of our work, and we’re excited for what comes next.”

Aquatrack, an agritech startup providing AI-driven farm management tools for fish farmers, and Growwr, a platform enabling businesses to hire, manage, and pay pre-verified African tech talent efficiently, also walked away with commendable support to boost their growth.

The Verto Awards 2025 selection process, rigorous and thorough, involved a panel of distinguished judges assessing each startup’s innovation, scalability, feasibility, and potential market impact. 

The judging panel included Dotun Adekunle, COO/CTO of OPay; Ime Enang, CEO of The Conversationalist Limited; Omotayo Idowu, group head, Commerce & SME of Providus Bank; Soibi Ovia, partner at DAO Law; and Austin Okpagu, country manager, Verto Nigeria.

Ola Oyetayo, Verto’s co-founder and CEO, commented on the initiative: “This inaugural edition of the Verto Award has revealed just how much innovation, resilience, and global ambition exist within Africa’s early-stage startup ecosystem. 

“The calibre of founders we’ve seen this year has been exceptional. As these businesses grow, expand, and strengthen international ties, we remain committed to providing the financial infrastructure that helps turn their global ambitions into reality.”

Since its launch in February 2025, the Verto Award has aimed to spotlight startups with sector-agnostic potential, supporting them both financially and in gaining visibility, as well as granting access to the tools needed for cross-border growth.

Trixie noted the unique spirit of Nigerian entrepreneurs, contrasting them with those in developed economies.

According to her, while startups in Silicon Valley innovate out of convenience or ambition, those in Nigeria build solutions born out of necessity, solutions forged in the face of power shortages, currency fluctuations, and infrastructure gaps. 

“In Nigeria, startups innovate to survive. That is why they scale faster and endure longer,” she said. “Survival itself is the foundation of their innovation.”

GITEX NIGERIA, making its first appearance in Lagos, can’t be limited in description as a conference, she noted. With over 650 startups, 100 major tech companies, 200 investors from 40 countries, and the support of the Nigerian government and NITDA, the event is designed to draw the world’s attention to Africa’s largest economy.

Trixie described Lagos as a “mega high-speed testbed for technology,” pointing to its 20 million residents as live beta testers for innovators. “If you can survive Lagos, your product can survive anywhere in the world,” she said. 

She also stressed that unlike many cities that lean on existing infrastructure, Nigerian startups usually build industries from scratch, a fact that has positioned the country at the top in fintech globally, with solutions that inspire entrepreneurs across continents. “In other markets, they adapt from infrastructure. Here, they create the infrastructure itself,” she explained.

Importantly, she cautioned against expecting instant wins. “This is not a sprint, it is a marathon,” she said, noting that most will not walk away with immediate funding. “80 to 90% of startups will fail. That is the harsh truth, but even failure comes with value, lessons, relationships, mentorship, and clarity.”

The biggest wins from GITEX will be the insights entrepreneurs gain by measuring themselves against global companies, pointing to opportunities for product benchmarking, market fit testing, and understanding interoperability with global systems. 

“Whether it’s aligning with Oracle, integrating with Space42 from the UAE, or refining their pitches to match global standards, these are lessons that only exposure at GITEX can provide,” she said.

“Please do not judge the aesthetics of where startups are operating from. Judge the resilience and ingenuity within those environments,” she said.

The EVP also addressed doubts about bringing GITEX to Nigeria. “Why Nigeria? Because we don’t do convenience. We don’t do easy. We are here to provide access to communities that have been underserved for too long,” she asserted, calling on investors and global partners to recognise the sincerity, passion, and ingenuity of Nigerian entrepreneurs.

With Lagos recently ranked as the fastest-growing emerging startup hub in the world, overtaking Mumbai, Bangalore, São Paulo, and Istanbul, Trixie reaffirmed the city’s place as a rising star in the global tech ecosystem. “You didn’t just join the list, you went straight to the top,” she stated

This is not GITEX NIGERIA joining the global ecosystem, it is the global ecosystem turning its attention to Nigeria. “You are not looking outward; the world is coming inward to meet you,” she emphasised.

However, Lagos is still the most prominent African city on the list and Nigeria’s single representative in the global top 100. 

The commercial hub scored 11.226 on the Index and recorded annual ecosystem growth of +14.7%, healthy growth by many measures, yet not enough to stop the slide in rank. 

At national level, Nigeria now sits 66th globally; the country recorded $176.4m in startup funding in 2024, has two unicorns, and counts 57 Y Combinator startups, but national ecosystem growth is +5.4%, and Nigeria slipped two places overall. 

Fintech is still the engine. The country “tops Africa’s unicorn charts” and the report reveals names you already know: Moniepoint and Flutterwave, both listed as unicorns and flagged among Lagos’ notable ecosystem champions (SB Scores: Moniepoint 669; Flutterwave 640). Nonetheless, the Index shows fintech’s success is concentrated: Lagos accounts for the vast majority of Nigeria’s startup growth. 

In simple terms, Lagos tops other cities across Nigeria. StartupBlink finds Lagos’s ecosystem is 11.8 times larger than Abuja’s, illustrating how national performance hinges on one city.

Abuja did, however, post extraordinary growth this cycle, climbing into the global top 400 at 399th with annual growth above 50%, the only Nigerian city to record a global climb in 2025. 

Other regional cities show mixed fortunes as Ibadan, Enugu, Port Harcourt and a newly listed Ilorin appear in the top 1,000 but most recorded declines. 

There is momentum — and there are gaps. Lagos benefits from a dense support network: Lagos Angel Network, Growth Capital Fund, Ventures Platform and Greenhouse Capital all play visible roles, while non-profits such as FATE Foundation provide training and mentoring. 

The federal architecture has started to respond: the Nigerian Startup Act, a National Council for Digital Innovation and Entrepreneurship, and a Startup Investment Seed Fund are now on the books. The government has also struck a public-private arrangement with JICA to seed a new fund. These steps matter; they show policy finally following promise. 

Infrastructure and capital remain the choke points. The report flags a shortage of financing options, low purchasing power, and a practical disconnect between Lagos and other local ecosystems. 

It notes that Nigeria’s internet quality has improved, Starlink came in during 2023, and that NigComSat’s 2024 accelerator has begun to seed activity in space and satellite technologies (20 startups were selected for intensive spacetech mentorship). Still, the broader infrastructure deficit and limited local capital markets hold back scaling. 

What this means for founders and investors

Lagos is still the gateway. If you are scaling a fintech or consumer startup with innovation across West Africa, Lagos offers the customers, talent and networks you need. 

But I’d caution founders to plan for friction; payments, purchasing power limitations and uneven support outside Lagos are real risks. The Index suggests diversification of hubs inside Nigeria must be a priority if the country wants comprehensive, resilient growth. 

A few immediate implications for policymakers and ecosystem builders (drawn from the report):

• Invest in road-and-digital infrastructure outside Lagos to reduce the games-of chance that currently shape who succeeds. 
• Scale financing instruments that target growth (not just seed), and encourage closer ties between Lagos capital and provincial startups.
• Sustain public-private programmes (like the JICA fund and NigComSat accelerator) that move beyond pilot stage into long-term commitments.

To close, the StartupBlink Index 2025 shows that Lagos is Africa’s headline startup ecosystem and Nigeria’s growth engine. However, the nation’s overall ranking and the concentration of success in one city expose strategic fragilities. 

If investors leverage Lagos as a launchpad, and aggressively invest in the next tier of cities, Nigerian entrepreneurship becomes broad, durable and not just Lagos-dependent.

The report tracks 288 tech hubs across 69 countries and ranks them based on growth in enterprise value, unicorn creation, and economic factors like cost of living and GDP per capita.

Lagos has grown its startup ecosystem valuation by 11.6 times since 2017 and produced five unicorns within the same period. 

Companies like Flutterwave, OPay, Moniepoint, and Interswitch have played huge roles in ensuring this growth. Dealroom places Lagos above Istanbul, Pune, Belo Horizonte, and Mumbai in the “Rising Stars” category, a segment that spotlights cities with speedy acceleration in innovation and venture value.

As stated in the report, “What sets Lagos apart is its ability to adapt quickly, develop locally relevant innovations, and scale despite systemic obstacles. This agility continues to propel the ecosystem forward, reinforcing the city’s status as a leading hub for technology and entrepreneurship in Africa.”

Lagos now holds an enterprise value of $15.3 billion, with five unicorns, and has achieved a threefold increase in unicorn production since the previous assessment period. 

Its cost of living was just 22% that of New York City, giving it a competitive edge for startup scalability. With a population of 21.3 million and a GDP per capita of $1,600, Lagos is working hard to overcome economic odds.

“While Lagos shows impressive growth, several challenges threaten to hinder sustained progress. Infrastructure remains a major concern-frequent power outages, high cost of data and unreliable internet can slow operations and increase costs. Additionally, talent retention is becoming an issue with relocation driven by working conditions and remuneration.” said Etemore Glover of the Impact Investors Foundation.

Nonetheless, Lagos is bolstering Africa’s innovation record. It is the only sub-Saharan African city featured at the top of any global category in the report, even outranking tech-forward cities like Johannesburg, Nairobi, and Cape Town.

For an ecosystem long overlooked in mainstream global innovation rankings, this is a commendable statement for Lagos State and its growth drive across the tech sector in 2025 and beyond.