InDebted, a fintech company specialising in digital debt collection, has raised £50m (US$66m) in a Series C funding round.
The Sydney-based firm, which uses artificial intelligence and machine learning to personalise debt collection processes, is now valued at more than £350m (US$467m).
The funding round was led by Airtree, a venture capital firm focused on technology startups. Australian Retirement Trust, a superannuation fund, and Premier Capital Partners, a new growth fund, also participated. Existing shareholders Reinventure, Carthona and Perennial contributed to the round.
This latest investment brings InDebted’s total funding to £122.5m (US$163m) across five rounds. The company previously raised £22.5m (US$30m) in July 2022 at a £200m (US$267m) valuation in an unspecified round led by Perennial Value Management.
In a separate transaction, Second Quarter Ventures, led by Leigh Jasper, acquired £10m (US$13m) worth of existing shares from angel investors and early employees.
Expansion plans and profitability
InDebted plans to use the new capital for expansion into new markets, mergers and acquisitions, and further product development. The company currently operates in Australia, New Zealand, Canada, the United States and the United Kingdom.
Josh Foreman, Founder and CEO of InDebted, says: “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 next month and following this we’ll be using the fresh capital to further our presence in Europe and South America.”
The company reached operating profitability in February 2024, with a compound annual growth rate of 110%. Foreman, who has relocated to the United States, 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,” Foreman states.
InDebted’s technology
InDebted’s third-party digital collections solution utilises artificial intelligence and machine learning to personalise debt collections. The technology aims to make the process more manageable and less stressful for individuals owing money. This approach represents a shift from traditional debt collection methods, which often rely on more aggressive tactics.
Craig Blair, partner at Airtree, comments on InDebted’s approach: “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.”
Danny Gilligan of Reinventure, who backed InDebted from its seed round, adds: “We 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.”
Previous acquisitions
InDebted has a history of strategic acquisitions to support its growth. In 2021, the company acquired US firm Delta Outsource Group, expanding its presence in the North American market.
The following year, InDebted purchased Sydney-based debt collection agency Reminda, strengthening its position in the Australian market.
Josh Foreman concludes: “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.”
