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AI debt collection startup Ophelos raises £5m

Ophelos funding

London-based fintech Ophelos has raised £5m in new funds for its artificial intelligence (AI)-powered solution for the debt collection industry.

Founded in 2021, Ophelos uses machine learning technology to challenge what it considers to be poor practices in the debt collection industry, particularly during a time of increasingly high-interest rates and debt.

Its platform allows customers to resolve debts through manageable, personalised instalment plans and gives businesses insights into the financial wellbeing of customers.

“The past year has seen the cost-of-living crisis reach almost unbearable levels for millions of people, and debt will inevitably impact a majority of households across the country,” said Ophelos co-founder and CEO Amon Ghaiumy.

“With pressure growing on collections departments as a result of increased collections volumes and staff shortages following the pandemic, there is a dire need for automation and better use of technology by businesses in this space.”

The startup’s AI technology is able to detect consumer vulnerability and cater the debt collection team’s response to their needs.

Ophelos will use the new funds to support its growth plans as the firm looks to expand its services across the UK market. It also has plans to double the size of its team next year.

“The additional funding will enable us not only to improve our product and expand our services but also to realise our mission to become the new standard for how organisations resolve and manage debt – ethically and technologically,” said Ghaiumy

The funding round was led by AlbionVC, along with participation from Vast Ventures, Form Ventures, and existing investors Connect Ventures and Fly Ventures.

“Over the last several years, we have seen a fintech consumer revolution and the provision of debt from businesses to consumers has skyrocketed,” said Cat McDonald, an investment manager at AlbionVC.

“As a result, many businesses now have the power to choose where the line between good or poor financial health gets drawn for their customers. It is time for businesses to start drawing this line empathically.”

The startup has also received funding from a group of notable angel investors, including GoCardless co-founder Matt Robinson, Funding Circle co-founder James Meekings and Jonah and Noah Goodhart, the co-founders of Moat.

The company’s last funding round was in June 2021, when it raised £1.6m.

Last month, Ophelos partnered with credit card startup Yonder to provide debt collection services to the company’s millennial customers.