Sydney startup ezyCollect, which helps businesses with their debt collection through an automated platform, has raised $1.25 million in a funding round led by Tank Stream Ventures.
Launched in early 2014, the startup was launched by Arjun Singh and Raj Kuckreja after they themselves dealt with customers who were slow to pay.
Integrated with MYOB, Xero, and other accounting systems, the platform works by connecting to the client’s accounting provider and having them set up a reminder plan that automatically chases customers who have overdue payments. It also allows businesses to thank customers who pay on time.
The startup reports that it has more than 1,000 users signed up across eight countries, and will put the funding towards raising further awareness of its product and making the platform available to more customers.
“The solution had to be easy for SMEs to use and implement. We did this by simplifying the traditionally complex and inefficient process of debt collection. We automated manual actions such as followup emails and SMS and scheduled follow up tasks for staff such as managing disputes and making calls,” Singh said.
According to Singh, the platform allows businesses to get set up within 30 minutes.
Since its 2014 launch a number of other startups have entered the debt collection space, from IODM, which works by having businesses upload their debtor details, to Collect More, an app looking to teach small business owners learn tips and tricks to help them chase up debt, though ezyCollect believes it has a unique solution.
Rui Rodrigues, managing partner at Tank Stream Ventures, said the firm is pleased to support ezyCollect’s vision.
“It’s a valuable, practical shift in shortening the invoice-to-cash cycle,” he said.
The investment is one of a handful Tank Stream Ventures has made since raising its $20 million fund just over a year ago to invest in early-stage startups with global objectives. Upon raising the fund, Tank Stream Ventures promised to help startups bridge the gap between Australia and China, thanks to one of its investors being based in mainland China.
Included in the firm’s portfolio are bug tracking and client feedback tool BugHerd, taxi booking and rideshare startup GoCatch, and equity crowdfunding platform Equitise, while the firm also led a $1.1 million seed round for Hobart video startup Biteable last November.
Image: Raj Kuckreja, Jimmy Cooper, Arjun Singh. Source: Provided.