The round consisted of new and existing investors and was led by Arbor Ventures Fund. Other participants were: Felicis Venture, Caffeinated Capital Fund, Assurant Growth Investing, Nyca Investment Partnership, TenOneTen and Crystal Towers.
• Rapid Growth: Between 2016 and 2017, grew its customer base by 2.5x with more than 1.8 million customers on its platform raking in approximately $1.6 billion.
• Strong ROI: Exceptional recovery results beating traditional agencies’ debt collection rates by a minimum of 50% to upwards of 500%.
• Solid Client Base: client line-up includes top technology companies such as Yelp and LendUp along with top 10 issuers and leading creditors.
Anyone who has had to deal with debt collection knows how terrifying and stressful the experience can be for both the indebted and the debt collector.
Ironically, it was one of those bad personal experience of dealing with a debt collector that birthed the company that is currently redefining the debt collections industry.
After the experience, Ohad Samet Chief Executive Officer of TrueAccord realized there was something inherently wrong with the way debt collection was being done and the traditional collections industry was ripe for disruption with technology innovation and a more customer-friendly approach.
TrueAccord’s data-driven debt collection platform, which humanizes the debt collection process, is disrupting the collections industry by helping businesses collect more debt online than traditional methods.
The startup utilizes machine learning to streamline debt collection, making it more manageable for the people in debt, while at the same time increasing recovery rates for the financial institutions to whom they owe.
The four-year-old company facilitates a softer collecting style than the typical harassing phone calls of the debt collection agencies.
True Accord’s platform is a decision engine that analyzes consumer behavior and determines when and how they should be contacted about their debt, as well as the best payment options to offer.
The company communicates via email, text messaging and social media.
Using algorithms the company also reduces the number of times it reaches out to a customer to an average of three per-week from several calls a week, according to the company.
Through TrueAccord if a customer is in financial distress they can get a personalized payment plan, negotiate a reduction in their debt burden or report bankruptcy. Users have the option of getting updates on the status of their debt on their mobile devices.
By humanizing the debt collection process making it customer-focused, plus strong regulatory support for innovation, TrueAccord has been experiencing tremendous demand from the market.
In less than a year, the company grew its customer base by 2.5x with more than 1.8 million customers on its platform since inception raking in approximately $1.6 billion. They claim to beat traditional debt collection agencies rates by a minimum of 50% to upwards of 500% with clients such as Yelp! and LendUp.
TrueAccord’s unique approach to redefining the debt collections industry through a digital approach receiving higher customer engagement, satisfaction, and recovery rates, has impressed Arbor Ventures influencing them to invest in the startup, according to Melissa Guzy, co-founder and managing partner at the Venture Capitalist firm.
The company said it would use the new money for 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.
The new investment brings TrueAccord’s total funding to nearly $35 million.
TrueAccord was founded in 2013 by serial entrepreneurs and brothers Ohad and Nadav Samet TrueAccord (Chief Innovation Officer).