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COVID-19 Startups

Symend Raises $52M To Improve The Debt Resolution Experience

Illustration of piles of gold coins to represent money

Collecting late payments isn鈥檛 a fun job for any company. But how they go about working with customers to get those payments can make a difference for both the customer and the business, according to Canadian startup , which announced a $52 million fundraising round on Thursday.

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Symend鈥檚 platform uses artificial intelligence, behavioral science and machine learning to provide insight into the situation of a customer who has a payment past due. Utilities, service providers and other companies can use Symend to connect with 鈥渁t-risk鈥 customers and craft empathetic messaging.

When they were younger, co-founders Hanif Joshaghani and Tiffany Kaminsky both experienced the negative effects of collections on either themselves or their families, Joshaghani said. So after having their own success with startups, they wanted to tackle a problem that hadn鈥檛 seen improvement.

鈥淭his experience has gotten worse over time, we want to be able to redefine it from a collections problem to a customer experience, a retention, an engagement problem. We鈥檙e really excited to view it from that lens,鈥 Joshaghani said.

Symend is not collections, Kaminsky said, and the new funding will be used to move what the platform already does further and faster. Part of that is looking at how to make sure people don鈥檛 go overdue on their bills and how to make sure they don鈥檛 get stuck with third-party collectors, Kaminsky said.

The company has assisted about 10 million consumers through the platform, and it expects that number to be more than 100 million by the end of the year, according to Kaminsky. With the COVID-19 pandemic causing mass layoffs and rising unemployment, Symend has seen an increase in people getting behind on their bills.

鈥淲e鈥檙e trying to be really proactive in, 鈥榟ow do we make sure we鈥檙e giving them a solution for not just right now but for three months from now?鈥欌 Kaminsky said.

led the new round, with participation from investors including and . The company, which is based in Calgary, Alberta, now has just over $60 million in total funding.

Companies need to engage with customers in a humane way to both eventually collect payment, but also to avoid churn, according to Joshaghani.

鈥淚t鈥檚 all about what is the tone of voice, the right message, how we can get them the right solution,鈥 he said. 鈥 鈥 how do you engage them, how do you empower them, and how do you cure them and stand by them?鈥

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