Debt collection software-maker Symend has raised $1m from angel investors in a seed funding round.
The names of the participating angel backers remain undisclosed.
The Calgary-based startup is developing software aiming to combine automation, predictive analytics and expanded treatments to reduce debt delinquency and promote transparency in the collection process.
Symend operates on a software-as-a-service basis and will initially target it platform at utility providers, telecoms and unsecured credit card suppliers to help them recoup their customer debt.
Company founder and CEO Hanif Joshaghani said, “We are very happy with our seed round raise. Our company has a launch valuation of $2.5 million, a great starting point for our investors who we want to thank for helping us kick-off.”
Symend says it will use the new capital to start building out the technology for its initial customers with the aim to launch a pilot platform in the first half of next year.
The company claims current debt collection systems using collection agencies only see a 7% annual success rate with agencies taking between 20% and 50% of the recovered money.
James Lochrie, founder of Wave Accounting and a Symend Advisor said, “The collection process is broken because companies do not take a customer centric view to the problem.
“There is potential for dramatic improvement by focusing on customer experience and retention while also engaging in the challenging task of collecting overdue funds.”
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