Debt resolution tech company Ophelos has acquired £5 million in capital via a seed funding round that was reportedy led by AlbionVC.
Vast Ventures, Form Ventures, Connect Ventures and Fly Ventures and angels including GoCardless co-founder Matt Robinson and Funding Circle co-founder James Meekings also made contributions to the investment round for “pending” B-corp Ophelos.
The Ophelos debt resolution platform leverages machine learning and advanced analytics to identify potentially vulnerable clients who may be in debt.
It then provides clients with an all-digital self-service option that allows them to address their debts on their terms – for instance, via BNPL or over a number of personalized instalments.
Introduced in 2021, the company has reportedly signed up three of the biggest energy retailers in the United Kingdom along with Fintech platforms such as Butter, Plend, and Yonder.
Amon Ghaiumy, CEO at Ophelos, stated:
“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. 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.”
Cat McDonald, Investment Manager at AlbionVC, said:
“Over the last several years, we have seen a fintech consumer revolution and the provision of debt from businesses to consumers has skyrocketed. 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. We are thrilled to be partnering with the Ophelos team as they rebuild the relationship between businesses and consumers.”
Rory Stirling, General Partner at Connect Ventures, remarked:
“It’s rare to see a fintech company with such a strong social purpose. We believe Amon, Paul, Qingchen and the Ophelos team are building something that will positively impact the experience of millions of people across the UK, whilst also improving the outcomes for enterprises. The system of debt has been built on the misfortune of financially vulnerable individuals for too long, and we’re confident in Ophelos’ ability to fix it.”