Debt Collection FinTech January Raises $12 Million

Debt Collection FinTech January Raises $12 Million

A FinTech focused on changing debt collection practices has closed a new round of funding.

About the round:

January has announced that it’s raised $12 million. The Series B was led by IA Ventures with participation from returning investors Brewer Lane Ventures, Third Prime, and Reciprocal Ventures alongside new investors such as Upper90 and Shrug Capital. This latest funding will help facilitate new product development as well as allow it to expand its market. To date, the company has now raised $22 million following a $10 million Series A last year.

About January:

With a goal of “humanizing debt collection,” January is a FinTech that’s also modernizing the collections process. According to the startup, it uses data-driven personalized borrower outreach and tech-enabled platform to not only help collect debts but also do so in a compassionate way.

Currently, the startup works with a number of banks, credit unions, debt buyers, and fellow FinTechs. January says that its collection services for these firms is 150 times more efficient than traditional methods. Additionally, it notes that its system is the top source of debt recovery for 90% of its clients.

What they’re saying:

In a press release announcing the funding round, January founder and CEO Jake Cahan spoke to the need for the service, stating, “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.” Cahan went on to say, “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.”

On the other end of the transaction, IA Ventures managing partner Jesse Beyroutey discussed the firm’s investment, saying, “IA is excited to triple-down and lead January’s Series B, bringing a customer-centric collections experience to every borrower in the country and funding the business to profitability. January has proven that industry-leading recovery rates and happy borrowers is not only possible, but reliable at scale, across millions of borrowers served.” Beyroutey concluded, “Legacy collections agencies treat borrowers like criminals, and January has shown that treating borrowers like customers works better. The platform is poised to scale to every creditor in the US and beyond and fix this historically broken relationship.”

My thoughts:

Reading about January, it sounds as though the service is a win-win-win for borrowers, collectors, and the company itself. In turn, it’s understandable that investors would continue to see value in the startup. Assuming that their platform is able to achieve all of the goals the company has, January seems well on its way to making a major impact in the debt collection field.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

Bilt and Blade logos on NY skyline

Bilt Announces Partnership with Blade Helicopter Service

Bilt is bringing more perks to its most loyal customers thanks to a new partnership. About the partnership: This week, Bilt Rewards revealed a collaboration with Blade. As part of this partnership, not only will Bilt members earn bonus rewards on Blade bookings but elite members will also enjoy special benefits from the helicopter taxi service. Now, Bilt Platinum elite customers will receive one complimentary Blade flight per year. This...
Ramp logo

Spend Management FinTech Ramp Raises $150 Million

The FinTech startup Ramp has revealed its latest "mega-round." About the round: This week, Ramp announced that it had raised $150 million. The Series D-2 was co-led by Khosla Ventures and Founders Fund. Additionally, new investors Sequoia Capital, Greylock, and 8VC joined existing investors Thrive Capital, General Catalyst, Sands Capital, D1 Capital Partners, Lux Capital, Iconiq Capital, Definition Capital, Contrary Capital, and others in participating in the round. To date,...
man holding a small model house

Lessons From a First-Time Home Buyer: The Worst Parts of Homeownership So Far

As you can probably imagine, making the jump from being a long-time apartment dweller to a first-time homeowner has been drastic. On the whole, the changes have been positive (which is why we chose to buy in the first place). But, of course, there are some downsides too — including some that I didn't really think about ahead of time. With that in mind, I wanted to share some of...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...