DPDzero, a fintech startup, has raised $7 million in a new funding round. The round was led by GMO Venture Partners, a Japan-based venture capital firm that focuses on fintech.
SMBC Asia and Blume Ventures, who had invested earlier, also joined this round along with other investors.
The startup, based in Bengaluru, plans to use the money to hire its team of field collection agents.
“What we are also going to do with the new capital-raise is our field collection agents so that we can bring in this new attitude of ethical collection behavior. We want to take care of end-to-end collections for all banks and all NBFCs in the country,” co-founder Ananth Shroff said.
“Over the past decade, we have been deeply committed to India’s fintech ecosystem. As the credit landscape matures, collections remain its most under-served frontier… We are proud to back the founders as they reimagine collections for India,” said Ryu Muramatsu, a founding partner of GMO Ventures Partners.
DPDzero was founded in 2022 by Ranjith BR and Ananth Shroff. The company uses a mix of AI and human agents to help fintechs, banks, NBFCs, and MFIs collect debts.
It currently works with several major financial institutions, including RBL Bank, IndusInd Bank, L&T Finance, and Manappuram Finance.
DPDzero will soon start using field collection agents in Bengaluru. In the coming years, it also plans to expand this to other states like Maharashtra and Uttar Pradesh, where a significant number of loans are given.
Currently, the company primarily collects unsecured loans, but it plans to expand into personal loan and credit card collections as well. So far, DPDzero has helped collect payments from 1 crore borrowers and currently manages collections for 18 lakh borrowers every month.
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