SAN FRANCISCO–(BUSINESS WIRE)–TrueAccord, the company driving transformation in the debt collection market, announced today that is has closed $22M in additional funding. Arbor Ventures led the round, with participation from existing and new investors including Nyca Investment Partnership, Assurant Growth Investing, Caffeinated Capital Fund, Felicis Venture, TenOneTen and Crystal Towers. The Series B funding follows a period of sustained and rapid growth for TrueAccord which is providing exceptional customer experience for consumers in debt while increasing recovery rates for nationally recognized financial institutions, debt buyers, lenders, and technology companies.
This additional investment will fund TrueAccord’s strategic growth initiatives, including ongoing product development and innovation of its customer-focused platform, providing world-class audit and compliance functionality, continued expansion into vertical markets, client acquisition and retention, and hiring.
“TrueAccord is redefining the debt collections industry through a digital approach for debt recovery,” said Melissa Guzy, co-founder and managing partner at Arbor Ventures. “It is achieving higher customer engagement, satisfaction and recovery rates through its data-driven platform, which tailors the collection process to individual consumer preferences. This unique approach is making a positive impact on an overlooked industry ripe for innovation and empowering many of the estimated 77 million people in debt to get on a path to better financial health.”
Since closing its Series A round in 2015, TrueAccord has reached significant milestones, including:
- Customer Expansion: Between 2016 and 2017, TrueAccord grew the accounts it collects by 2.5x with more than 2 million customers on its platform since inception.
- Strong ROI: TrueAccord has demonstrated exceptional recovery results and beaten traditional agencies’ debt collection rates by a minimum of 50% to upwards of 500%.
- Client Acquisition: TrueAccord’s clients include top 10 issuers, leading creditors, and technology companies such as Yelp and LendUp with more than $1.5 billion of debt flowing through the platform since 2014.
“It was the personal experience of dealing with a debt collector that made me realize the traditional collections industry was ripe for disruption with technology innovation and a more human approach,” said Ohad Samet, Chief Executive Officer of TrueAccord. “With changing consumer preferences, strong regulatory support for innovation, and clients who understand a customer-focused collection process is good for their business, we’re experiencing tremendous demand from the market. We are seizing this opportunity to use machine learning to humanize debt collection for good.”