Fintech Indebted sacks 40 staff amid $22.5 million raise
Debt collection fintech Indebted has raised $22.5 million in a round that has doubled the company’s valuation to $200 million.
But the round, led once again Perennial Value Management, which came on board 12 months ago to lead a $25m Series B last July, comes as the business also sheds 17% of its staff, with the loss of 40 jobs.
Existing investors Carthona Capital and Singapore-based VC MassMutual Ventures also chipped in on the latest round, taking the total raised across four funding rounds to $72.5 million.
Indebted founder and CEO Josh Foreman made the job cuts at the end of the financial year, with the redundancies mostly focused on sales and marketing roles. Founded in 2016, the business had a team of more than 270 across 11 countries.
The cuts were made to delay additional capital raising in tougher times, despite the fact that the business has the potential to benefit from an economic downturn that will increase the potential for demand for the service.
The digital consumer debt collection fintech operates in in five markets: Australia, New Zealand, Canada, the US and the UK, where it officially launched, ramping up British operations in May this year.
InDebted specialises in digital debt collection and is building a global collections API. The fintech uses data insights it gathers from the people it’s seeking to collect money from to create a positive customer experience when collecting outstanding debts for its clients.
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