Ophelos, a startup using AI to radically rethink the debt resolution process in the UK, has raised a seed round of funding totalling £5 million.
The funding round was led by AlbionVC, which has previously invested in fintechs such as Quantexa and Credit Kudos.
Contributions were also made by Vast Ventures, an early investor in Coinbase and Tala, regulatory and public policy experts Form Ventures, as well as existing investors Connect Ventures and Fly Ventures.
A group of angel investors – including Matt Robinson (co-founder, GoCardless & Nested), James Meekings (co-founder, Funding Circle), and Jonah and Noah Goodhart (co-founders, Moat) – also participated.
Launched in 2021 by Amon Ghaiumy, Paul Chong and Professor Qingchen Wang, Ophelos’s client list boasts three of the largest energy retailers in the UK, and FinTech brands including Yonder, Plend and Butter.
Ophelos says it is significantly outperforming traditional debt collection agencies on debt recovery rates, having seen performance improvements of up to 100%.
“We are incredibly excited to take this next step in Ophelos’ journey,” said Amon Ghaiumy, CEO and co-founder.
“Against one of the most challenging fundraising climates in the past decade, the success of this funding round shows that our approach to transforming the debt resolution process resonates with the best investors in Europe & US.
“The additional funding will enable us not only to improve our product and expand our services, but also realise our mission to become the new standard for how organisations resolve and manage debt – ethically and technologically.
“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.
“Additionally, customers should feel empowered to resolve their debts without the fear of facing a visit from the bailiff, or other poor debt collection practices.”