Global debt collection fintech, InDebted, today announced the completion of its US$40 million Series C capital raise, valuing the company at greater than US$250 million.
InDebted provides future-thinking organizations with a better alternative to traditional debt collection agencies. By using technology such as machine learning to personalize every collections journey, with the support of a dedicated Customer Experience team, InDebted makes the experience of debt resolution more human.
The Australian-founded organization has a significant presence in its home country but is now generating 70% of group revenue from its US operations – increasing 195% over the last fiscal year. Almost half of the company’s 300 employees are based throughout the United States, including its Founder and CEO Josh Foreman, who relocated to the US in 2023.
The capital injection reflects a strong vote of confidence in InDebted’s differentiated products and solutions, financial and operational performance, and global growth strategy.
Led by Airtree and supported by a range of existing and new investors, the new capital is not required to support existing operations and will be used to fuel further growth such as expansion into new markets, delivery of its M&A strategy, and developing the company’s products and solutions. InDebted achieved operating profitability in February 2024, with a compound annual growth rate of 110%.
While this funding round has been supported primarily by Australian domiciled investors, InDebted is seeing increased interest from US funds who are following the organization’s development.
Primary investors include Airtree, Australian Retirement Trust and new growth fund Premier Capital Partners. Existing shareholders Reinventure, Carthona and Perennial have also participated, with Second Quarter Ventures purchasing shares from angel investors and early employees.
InDebted Founder and CEO Josh Foreman said this funding injection will enable the company to further expand its operations around the world.
“We’re launching in the UAE and Mexico in next month and following this, we’ll be using the fresh capital to further our presence in Europe and South America,” said Mr. Foreman.
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“While the demand for InDebted’s differentiated solution is global, the United States is a key part of our growth story, where InDebted has been referred US$2B in accounts by US organizations who care about supporting their customers with a positive collections experience driven by technology.
“We know that delinquency rates continue to increase in the US, and millions of consumers have become reliant on credit products to fill the budgeting gaps created by increased cost of living pressures.
And when savings safety nets are vanishing, the role of debt collection becomes more prevalent than ever. We believe that empathy, flexibility and convenience must lead the way.”
Airtree Co-founder and Partner Craig Blair said that’s why InDebted is rewriting the narrative on debt collection, using technology and data to deliver ethical solutions that alleviate what has traditionally been a painful customer experience.
“We’ve known Josh and the team for many years and have seen the business go from strength to strength, positioning themselves as category leaders and displacing incumbents along the way,” Mr. Blair said.
“InDebted’s global success, product innovation and best-in-class growth and performance made partnering with the team for this next stage an easy decision.”
Reinventure Co-Founder Danny Gilligan said they first invested in InDebted’s seed round seeing the huge potential for efficiency gains by applying technology to a very large, manual industry.
“Since then, the team has continued to impress us by creating an empathetic solution to a difficult problem, becoming the only partner for organizations who are serious about customer experience,” Mr. Gilligan said.
Mr. Foreman added, “Globally, the debt collection industry is ripe for consolidation, and this capital injection ensures we are well placed to continue our participation in this consolidation to further drive profitable growth for our investors, while progressing the sector at large, and supporting people around the world with a better experience managing debt.”
Santander Corporate & Investment Banking (Santander CIB) acted as the exclusive financial advisor and placement agent to InDebted in this transaction. Legal advice was provided by King & Wood Mallesons in Sydney.
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