Prodigal Technologies, Inc., a debt collection technology start-up, has received a seed investment from Y Combinator, a well-known accelerator that has backed companies like Airbnb, Dropbox, and Reddit.
A seed investment from Y Combinator typically includes an investment of $120,000 in exchange for an equity stake in the company, usually in the neighborhood of 6%.
Similar to other technology-focused companies in the space, Prodigal offers an omnichannel communication model that allows individuals to interact and pay debts across a multitude of options, including email, text messaging, and over the phone.
According to its website, customers using Prodigal’s platform have experienced a 20% increase in collection rates. The company was founded last year by three graduates of the Indian Institute of Technology.
“With the advent of artificial intelligence, newer technologies like voice analytics can also be used to help call-centre managers understand how helpful agents are to borrowers,” said Shantanu Gangal, the company’s CEO, in a statement.
A number of new startups, including TrueAccord and Scratch, have been raising money to grow their collection-focused platforms. Scratch announced in September it had raised $17 million, and its founder, Sameh Elamawy, was recently appointed to the Bureau of Consumer Financial Protection’s Consumer Advisory Board. Last year, TrueAccord announced it had raised $22 million to continue its rapid growth.