Clerkie, San Francisco-based company announced this week that it has raised $33 million in a Series A funding round — led by Left Lane Capital, with participation from Wellington Management Company, Flourish Ventures, Citi Ventures, CMFG Ventures, and Vestigo Ventures. This brings Clerkie’s total funding to $41 million, following a $6 million seed round.
Clerkie says its platform is designed to disrupt the traditional debt collection process by offering a more efficient and consumer-friendly approach. The company will use the funds to expand its engineering team and scale its AI-led debt workout solutions to support more partners and help more borrowers.
Clerkie’s platform leverages conversational AI to interact with users, provide personalized debt guidance, and offer alternatives to avoid delinquency while improving credit scores. By automating much of the debt management process, Clerkie aims to eliminate predatory collection practices and lessen the debt burden on American families.
As the debt crisis in America continues to worsen, with “tens of millions” of citizens struggling with debt and falling into delinquency, the need for an innovative solution has never been greater, the company said. Clerkie’s AI-powered approach not only benefits borrowers but also offers significant advantages for debt collection professionals.
“The consumer debt market is fundamentally broken for consumers and the creditors that serve them, as evidenced by the predatory collections practices and the crushing amount of debt burdening American families” said Guy Assad, CEO and co-founder of Clerkie. “Today, tens of millions of Americans are struggling with their debts and are falling into delinquency. It’s a lose-lose situation for the borrowers and for the banks who are racking up billions in losses. Our goal is to support struggling American families by giving them better tools to responsibly fulfill their debt obligations and ease their debt burden.”
By streamlining the debt management process and providing tailored solutions for borrowers, Clerkie’s platform can help debt collectors reduce the time and resources spent on chasing delinquent accounts. Furthermore, the platform’s proactive approach to identifying at-risk borrowers and offering workout options helps improve the chances of successful debt recovery.
Emmalyn Shaw, Managing Partner at Flourish Ventures, highlighted the importance of Clerkie’s debt automation platform in the current financial climate. She noted that with interest rates at their highest level in nearly 20 years and delinquent consumer debt expected to exceed $130 billion, Clerkie’s solution is more crucial than ever.
Clerkie’s revolutionary AI-powered platform presents a unique opportunity for debt collection professionals to adapt and thrive in a changing industry landscape. By embracing this technology, collection agencies can provide a more compassionate, efficient, and effective service, benefiting both lenders and borrowers alike.
