Funding Circle founder backs debt resolution platform
Funding Circle co-founder James Meekings is among financial backers that have helped debt resolution platform Ophelos raise £5m in seed funding.
Ophelos, which recently partnered with new peer-to-peer lender Plend, uses machine learning technology to simplify and automate the debt resolution process.
The funding round was led by AlbionVC along with Vast Ventures, Form Ventures, existing investors Connect Ventures and Fly Ventures as well as business angels including Meekings.
“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,” Amon Ghaiumy, chief executive of Ophelos, said.
“With pressure growing on collections departments as a result of increased collections volumes and staff shortages following the pandemic, there is dire need for automation and better use of technology by businesses in this space, rather than on relying on antiquated debt collection agencies.”
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A blog on the AlbionVC website explained why it invested in the brand.
“Ophelos is breaking the mould of what it means to be a high-growth tech company,” the blog said.
“They use machine learning algorithms and data – more often affiliated with cold, dispassionate tools used by ad-giants and city traders – to provide better, more empathetic debt resolution that focuses on consumer wellbeing.
“With double digit inflation driving up living costs, their solutions couldn’t be coming to market at a better time.”
It was revealed last month that Ophelos had partnered with Plend to help customers resolve their debt in an ethical way.
“As a pending B-corporation like ourselves, Ophelos understands the importance of putting people first and managing customer relationships with a degree of empathy,” said Pasco, chief executive officer and co-founder of Plend, at the time of the announcement.
“Debt resolution needs to be accessible for our customers, not an afterthought, which is why Ophelos’ debt resolution technology platform will become a core part of our lending platform.”