InDebted, an Australian company that made a huge splash this week by announcing its entry into the United States accounts receivable management industry through a huge acquisition and hiring some very well-known names to help guide it, raised nearly $8 million to fund its expansion.
About two-thirds of the investment came in the form of equity while the remaining funds — about $3 million in debt — was used to fund the acquisition, according to a published report.
The company announced it had purchased Delta Outsource Group, a collection agency based in St. Louis. It also announced that Tim Collins will be the company’s Chief Customer Officer and Joe Gelbard will be its Chief Revenue Officer. Gelbard and Collins worked together at TrueAccord, where Collins was the chief compliance officer and general counsel and Gelbard was the Chief Revenue Officer. InDebted also hired John Watson to run Delta Outsource Group.
MassMutual Ventures Southeast Asia, with participation from Carthona Capital, were the lead investors in the capital raise. OneVentures supplied the debt financing, according to the report.
InDebted had already expanded to New Zealand and Canada before making its way into the United States. It has processed $1 billion of debt since it was founded, according to the report, using a collections approach that relies on technology and customer experience. The company has gone as far as to ban use of the word “debtor” inside its walls, according to the report.
While it specifically mentioned Delta’s client list as a primary driver for the acquisition, company executives said that most of InDebted’s clients are fintech companies who are “expanding geographically and entering lots of new markets.”
