London-based fintech Ophelos has raised £5m in new funding for its artificial intelligence (AI)-based solution for the debt collection industry.
Founded in 2021, Ophelos uses machine learning technology to challenge what it sees as bad practice in the debt collection industry, especially in an era of rising interest rates and debt. higher.
Its platform allows customers to settle their debts through manageable, personalized payment plans and gives businesses insight into customers’ financial well-being.
“The past year has seen the cost of living crisis reach almost unbearable levels for millions of people, and debt will inevitably affect the majority of households across the country,” said the co-founder and CEO of Ophelos, Amon Ghaiumy.
“With increasing pressure on collection services due to increased collection volumes and staff shortages as a result of the pandemic, there is an urgent need for automation and better use of technology by businesses in this space.”
The startup’s artificial intelligence technology is able to detect consumer vulnerability and tailor the debt collection team’s response to their needs.
Ophelos will use the new funds to support its growth plans as the company seeks to expand its services in the UK market. He also plans to double the size of his team next year.
“The additional funding will allow us not only to improve our product and expand our services, but also to fulfill our mission to become the new standard for how organizations resolve and manage debt – ethically and technologically,” said Ghaiumy.
The funding round was led by AlbionVC, with participation from Vast Ventures, Form Ventures and existing investors Connect Ventures and Fly Ventures.
“Over the past few years, we’ve seen a consumer fintech revolution and the supply of corporate debt to consumers has exploded,” said Cat McDonald, chief investment officer at AlbionVC.
“As a result, many companies now have the power to choose where the line between good and bad financial health lies for their customers. It’s time for companies to start drawing that line with empathy.
The startup has also received funding from a group of notable angel investors, including GoCardless co-founder Matt Robinson, Funding Circle co-founder James Meekings, and Moat co-founders Jonah and Noah Goodhart.
The company’s last funding round was in June 2021, when it raised £1.6m.
Last month, Ophelos partnered with credit card startup Yonder to provide debt collection services to the company’s millennial customers.