UK-based debt resolution technology firm Ophelos has secured £5m in a seed funding round led by AlbionVC.
AlbionVC was joined by Vast Ventures, Form Ventures, and existing investors Connect Ventures and Fly Ventures.
The round also saw participation from a group of angel investors, including GoCardless & Nested co-founder Matt Robinson, Funding Circle co-founder James Meekings, Moat co-founders Jonah and Noah Goodhart.
Ophelos will use the funding to support its growth plans of expanding its debt resolution automation platform.
The proceeds will also be used to double Ophelos’ team size in the next year.
It will be hiring across engineering, product, data, machine learning, marketing, sales, and people functions.
Ophelos uses machine learning and advanced analytics to provide an insight into the financial well-being of customers. It also offers a means to resolve debts on customers’ terms.
AlbionVC investment manager Cat McDonald 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.”
Ophelos CEO and co-founder Amon Ghaiumy said: “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 a dire need for automation and better use of technology by businesses in this space, rather than on relying on antiquated debt collection agencies.”