San Francisco based TrueAccord
, announced today that is has closed $22M in additional funding led by Arbor Ventures, with participation from existing and new investors. The Series B funding follows a period of sustained and rapid growth for the company.
TrueAccord's data-driven debt collection platform is disrupting the collections industry by helping businesses collect more debt online than traditional methods. True Accord's platform is powered by machine learning with a decision engine that analyzes consumer behavior and delivers personalized experiences by communicating with consumers at the right time in the right channel with payment options that meet their needs.
The company was established in 2013 by serial entrepreneurs, brothers Ohad (Chief Executive Officer) and Nadav (Chief Innovation Officer) Samet after being treated badly while subjected to collections on a small balance; They realized there was something inherently wrong with the way debt collection was being done and recognized an opportunity to build a system to fundamentally change the debt collection industry, with the help of machine learning.
"It was the personal experience of dealing with a debt collector that made me realize the traditional collections industry was ripe for disruption with technology innovation and a more human approach," said Ohad Samet, in a phone call last week. "With changing consumer preferences, strong regulatory support for innovation, and clients who understand a customer-focused collection process is good for their business, we're experiencing tremendous demand from the market. We are seizing this opportunity to use machine learning to humanize debt collection for good." he continued.
This additional investment will fund TrueAccord's strategic growth initiatives, including ongoing product development and innovation of its customer-focused platform, providing audit and compliance functionality, continued expansion into vertical markets, client acquisition and retention, and hiring.
Between 2016 and 2017, the company grew the accounts it collects by 2.5x with more than 2 million customers on its platform since inception. The company claims to beat traditional agencies', for example, ARS, TSI and Northland, debt collection rates by a minimum of 50% to upwards of 500%. Clients include top 10 issuers, leading creditors, and technology companies such as Yelp and LendUp with more than $1.5 billion of debt flowing through the platform since 2014.
"TrueAccord is redefining the debt collections industry through a digital approach for debt recovery," said Melissa Guzy, co-founder and managing partner at Arbor Ventures. "It is achieving higher customer engagement, satisfaction and recovery rates through its data-driven platform, which tailors the collection process to individual consumer preferences. This unique approach makes a positive impact on an overlooked industry ripe for innovation and empowering many of the estimated 77 million people in debt to get on a path to better financial health."
TrueAccord aims to be the platform for financial health for people in debt, offering long term solutions for financial health in the debt collection process, "On our way there we must first establish our technology as superior for both consumers and lenders. After demonstrating we beat traditional agencies in 2016 and 2017, we are now quickly expanding our service to reach the majority of the 77 million Americans in debt every year." said Samet.
Other investors participating in the round include Nyca Investment Partnership, Assurant Growth Investing, Caffeinated Capital Fund, Felicis Venture, TenOneTen and Crystal Towers. Khosla Ventures, which led the previous round, hasn't announced participating in the current round and TrueAccord wasn't able to comment on Khosla's plans at the moment.