Debt collection fintech InDebted banks $50 million Series C

Consumer debt collection fintech InDebted has raised $50 million in a Series C that values the scaleup at more than $350 million

The round was led by Airtree and supported by Australian Retirement Trust and new growth fund Premier Capital Partners. Existing shareholders Reinventure, Carthona and Perennial also chipped in.

Indebted previously raised $22.5 million in July 2022 at a $200 million valuation in an unspecified round led by Perennial Value Management, which first backed the fintech’s $25m Series in 2021.

An additional $10 million worth of existing shares changed hands with Leigh Jasper’s Second Quarter Ventures scooping them up from angel investors and early employees.

The cash is earmarked for expansion into new markets, mergers and acquisitions, and further product and solution development. Indebted previously acquired US firm Delta Outsource Group in 2021, and in 2022, Sydney debt collection agency Reminda.

All up, the fintech’s raised $122.5 million across five rounds.

The Sydney fintech’s third-party digital collections solution usesAI and machine learning to personalise debt collections and make them a gentler and more pleasant experience for those owing money. It operates in Australia, New Zealand, Canada, the US and UK, and is now looking to the Middle East and South America.

Founder and CEO Josh Foreman launched Indebted in 2016 and in February this year, the business hit operating profitability, with a compound annual growth  rate of 110%.

“This capital will enable us to further expand our operations around the world, where we’re  experiencing significant demand for the solution we provide. 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,” Foreman said.

“While our vision is global, I’m incredibly proud that this raise consists almost exclusively of Australian capital to accelerate InDebted into the next chapter.”

Foreman, who relocated to the US, now has the cash to go shopping and believes the debt collection industry is ripe for consolidation globally.

“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,” he said.

Airtree partner Craig Blair said InDebted’s use of data delivers ethical solutions to alleviate a traditionally 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,” he 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’s Danny Gilligan backed the fintech from its Seed round and said he saw 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 organisations who are serious about customer experience,” he said.