January Technologies, a digital-first collection operation, announced this week that it has raised $12 million in its Series B financing, which the company plans to spend on scaling its platform and launching a pre-charge-off solution.
By the Numbers: The $12 million investment, led by IA Ventures, follows the company’s Series A fundraise of $10 million, which occurred less than two years ago, in January 2022.
- The company said it has helped hundreds of thousands of consumers resolve their debts and has increased the number of monthly accounts it works fivefold and grown revenue fourfold in the past two years.
- January claims its collection service is 150 times more efficient than traditional methods.
The Difference: January says its focus on “humanizing debt collection” is the future of helping consumers. Its plan is to build a single platform for creditors to address all of their collection and recovery needs.
The Last Word: “For a long time, we toiled away with the belief that treating consumers in a more compassionate manner would achieve better outcomes for consumers and creditors alike. The desire to create a better system drove our team, while we lacked statistical significance to substantiate our conviction. As our approach has touched millions of consumers’ lives, we hear weekly from borrowers expressing profound gratitude for resolving their financial challenges in a manner that upholds their dignity. The latest round empowers us to scale a new standard of compassionate collections to tens of millions more. Together with leading financial institutions, we’re not just dreaming of a more empathetic financial ecosystem. We’re actively building it.” – Jake Cahan, Founder and CEO, January