InDebted has raised close to $50 million in funding from both Australian and overseas investors and has grown into a global leader in just five years having raised a modest initial investment from friends and family.
Indebted is a prime example of an innovative Australian approach to debt
collection which has received funding from local and foreign sources and is
now set to go global.
InDebted was founded in 2016 in Sydney, with an ambitious goal to reinvent
collections through a digital first, data-driven solution that delivers
exceptional customer experiences. In simple terms, the company embarked on
a mission to disrupt and improve the debt collection experience for
everyone involved. An experience built upon digital communications,
data-driven decision making and risk compliance, and exceptional customer
experiences. Businesses outsource their debt collection to InDebted, who in
turn liaise with the debtors, resulting in improved recovery rates, reduced
compliance risk and better customer retention.
A real differentiating factor is InDebted’s customer centric debt
collection approach help people in a difficult stage of their financial
life. This is evidenced by more than 1,000 five star ratings, received from
consumers whom they are collecting from. The reviews show an empathetic and
flexible approach that really resonates with consumers who need support
during difficult times. Since its inception, InDebted has grown into a
global leader in a mere five years.
Raising a modest initial investment from friends and family, the business
required a more significant investment in order to move forward.
Reinventure made its initial investment of $600,000 at Seed round back in
2017 and supported InDebted’s growth all the way through to their most
recent Series B capital raise, investing a total of $8 million over five
years. The investments were made through an ESVCLP fund.
Overall, InDebted has raised close to $50 million in funding from both
Australian and overseas investors.
InDebted has processed more than $1 billion of debt since it was founded
and is used by the majority of non-banking fintechs, as well as big banks
and telecommunications companies in Australia and New Zealand.
As at 30 June 2021, InDebted employs close to 140 full-time staff in roles across
engineering, customer experience, product development and many more.
The company invests heavily in its people and their growth, offering above
market compensation, stock options, and unlimited paid leave. Importantly,
the company has continued creating new roles throughout the Covid-19
pandemic, as it was seeing a surge in use as banks of all sizes were drawn
to its less-aggressive communication approach with customers in arrears.
The business supports over 250,000 customers through their platform and has
a 98% customer satisfaction rating. InDebted is now set for global
expansion, opening offices in seven countries, in addition to their
headquarters in Australia.
In September, the Australian Investment Council lodged a very
important submission with the Federal Department of the Treasury in
response to the Venture Capital Tax Concessions Review which was
announced as part of the Government’s Digital Economy Strategy in
the 2021–22 Federal Budget. The review has been focused on how
effective VCLPs, ESVCLPs and AFOFs have been in attracting domestic
and foreign capital, developing innovation, and expanding venture capital
management skills and experience in the domestic market. Read the
Published February, 2022