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Debt collection startups

Lending money out is easy, the hard part is to get the money back.

There has been an exuberance in lending, partially driven by the fact that - since a few months ago - money capital was free and abundant with interest rates near zero or negative.

Rising interest rates driven by ramping inflation and economic slowdown are putting pressure on debt financing and bringing attention back to debt collection processes.
We have seen the fall of many BNPL providers with bad debt percentages up to 20%. 

While hundreds of billions of dollars have been invested in the last few years in digitalizing financial services, debt collection operations remain very manual and archaic, resulting in frustration for customers and lost money for service providers.

Startups in the segment have recently started to pick up steam attracting over $800M in VC funding since 2021.

These debt collection startups help on one hand lenders recover debt from personal borrowers and SMEs with digitally integrated workflow, ML & AI; and on the other hand, help borrowers deal with the repayment process.

Discover 50+ debt collection startups  helping lenders and borrowers deal with the new economic climate. 👇

In other news

🇪🇺 The European Central Bank (ECB) will collaborate with five companies to develop potential user interfaces for the digital euro. The companies selected are: CaixaBank, Worldline, EPI, Nexi, Amazon. - ECB

📈 The Monzo growth story to 1 million users. - Tom Blomfield

💚 The Role of Green Financial Sector Initiatives in the Low-Carbon Transition. - World Bank Group

Latest Fintech deals

The largest this week:

🇸🇬 Fazz raised a $100M Series C to power Financial Inclusion in SouthEast asia (SEA). 
Fazz provides business accounts that offer seamless payment, savings and credit functionalities for small and medium business in Indonesia and Singapore.

🇮🇳 Embedded insurance startup Zopper raised $75M to solve India’s insurance problem. Insurance penetration in India is still just 3-4%, Zopper hopes to solve this issue by working with insurance providers and creates byte-sized, personalized products that it then supplies to distribution partners

🇨🇭 Crypto platform Portofino Technologies raised $50M to support high-frequency traders. The startup aims to offer liquidity on the largest centralised and decentralised cryptocurrency exchanges and provides services to institutions and Web3 projects that require digital asset liquidity.

Other notable deals:

🇬🇧 Business payments startup Sequence has announced one of the biggest seed rounds in European fintech this year, $19M led by US VC giant Andreessen Horowitz (a16z) at a $75M post-money valuation.

Sequence is led by two second-time founders: CEO Riya Grover, ex co-founder & CEO of food delivery platform Feedr, and chairman Eamon Jubbawy, ex-cofounder of digital ID startup Onfido.

🇬🇧 Monese has raised $35M from the venture arm of UK retail bank HSBC. 
Both the Investec deal last year and the HSBC deal have seen Monese partner with these legacy companies to provide them with its cloud-based banking platform.

👩🏻‍💻 Together with our partner ABN Amro Ventures we're mapping startups developing tech for CFOs. Reach out if you want to be included or want to exchange ideas!

Read up on all the latest fintech deals in Dealroom.co

Tip of the week

🏆 Dealroom Signal Top 100

We’ve ranked the top 100 startups to watch over 6 verticals based on our Dealroom Signal: a powerful algorithm helping VCs, Corporates and Governments find the most promising up and coming startups.

Explore the top 100 startups built by our data-driven algorithm. 👈

Job opportunities

🇳🇱 At Dealroom.co we are looking to expand our Research Team with an intern focused on diversity and inclusion in venture capital, as well as a design intern, get in touch.

Discover 36,000+ job openings at fintech startups (login for full results)

Dive in

🔎Top 100 Fintech Startups to Watch, Top 100 Web 3 Startups to Watch

🌍 Fintech in MENA: a rising star

☂ The State of European Insurtech 

Lorenzo Chiavarini

Innovation Analyst
Dealroom

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