TrueAccord lands $22m to humanise debt collection
“It was the personal experience of dealing with a debt collector…”
Online debt collection service TrueAccord has received $22 million in funding – bringing its total amount to almost $34.5 million, reports Julie Muhn at Finovate (Banking Technology’s sister company).
Leading the round was Arbor Ventures. A mix of existing and new investors, including Arbor, Nyca Investment Partnership, Assurant Growth Investing, Caffeinated Capital Fund, Felicis Venture, TenOneTen and Crystal Towers, also participated.
The company noted this comes after a period of “sustained and rapid growth”– as between 2016 and 2017 TrueAccord grew its collection accounts 2.5x. The funds will be used to support TrueAccord’s growth initiatives, including product development, compliance functionality, client acquisition and retention, and hiring.
Melissa Guzy, co-founder and managing partner of Arbor Ventures, says TrueAccord’s “unique approach” is making a “positive impact” on the debt collections industry “by empowering many of the estimated 77 million people in debt, to get on a path to better financial health”.
TrueAccord was founded in 2013 as a debt recovery platform. The company has worked with more than two million people in debt by creating flexible payment solutions, helping businesses recover billions of dollars in lost revenue. TrueAccord’s clients include top ten issuers, leading creditors, and companies such as Yelp! and LendUp. Since 2014, the company has facilitated more than $1.5 billion of debt repayment on its platform.
“It was the personal experience of dealing with a debt collector that made me realise the traditional collections industry was ripe for disruption with technology innovation and a more human approach,” adds Ohad Samet, CEO of TrueAccord. “We are seizing this opportunity to use machine learning to humanise debt collection for good.”
