Singapore-based digital debt collection startup AsiaCollect has raised an undisclosed amount in a funding round led by SIG Asia Investments, bringing the company’s total funding to $4.5m.
The company said that it intends to use the fresh funds to support growth initiatives, including client acquisition in its core markets and enhance its SaaS solution.
The money will also be used to expand the company’s collections’ infrastructure and teams and to continue buying NPL portfolios.
The funding round was also joined by Dymon Asia Ventures, the venture capital arm of Singapore-based alternative investment manager, Dymon Asia Capital.
Dymon led AsiaCollect’s pre-series A equity round in August last year by making an investment of $1m.
The AI-driven startup offers integrated credit management services (CMS) in South-east Asia. Launched in 2016, AsiaCollect currently manages more than $40m in assets of over 10 financial institutions and digital lenders across Vietnam, Indonesia, and the Philippines.
AsiaCollect CEO and co-founder Tomasz Borowski said: “We are thrilled to have SIG on board as they have a unique track record of picking winners in financial services. As we move into the purchasing segment of the value chain, we are increasingly attracting significant investor interest, both from an equity and debt standpoint.
“Moreover, investors view the debt collections business as a classic counter-cyclical play, which is becoming increasingly important as we move into what looks like the peak of this cycle.”
“Over the medium to long-term, purchasing NPL portfolios off banks’ balance sheets is likely to be a major driver of revenue growth for AsiaCollect. We have already purchased our first portfolio from a large financial institution in Vietnam, and we are focused on executing on many more such transactions going forward.”