Credit management startup AsiaCollect bags $6m, rebrands as Flow

According to a report by Deloitte, Asian banks held a US$640 billion non-performing loans (NPL) stock in 2019, which is up 23% from the US$520 billion reported in 2018, presenting a sizable opportunity.

Photo credit: Flow

AsiaCollect, a Singapore-based credit management startup, wants to seize this opportunity by promoting “ethical debt collection” and improving the financial literacy of consumers in underserved economies in the region.

The company just raised US$6 million in a series A funding round led by German development finance institution DEG, Dymon Asia Ventures, SIG Asia, and SCB10X, the venture arm of Siam Commercial Bank. This follows the US$4.5 million it raised from SIG Asia in 2018, Arun Pai, the company’s chief sales and strategy officer, told Tech in Asia.

AsiaCollect is also rebranding as Flow, which is part of the company’s strategy to “redefine effective credit management,” according to a statement.

Flow plans to use the new funds to grow its business, which involves expanding into Thailand, the Philippines, and Malaysia. The funding will also support the development of AI models, such as predictive analysis of borrowers’ behaviors and speech recognition enhancement.

Founded in 2016, Flow uses automated and customer-centric collection strategies. It has a couple of AI-based modules, which include voice-to-text functionality for its quality control division and emotion analysis detection. It is also working on a number of other modules slated for roll-out later this year.

The company claims to have served over 2.8 million customers to date. It currently operates in Vietnam, Indonesia, and India.

In an interview, Flow co-founder and CEO Tomasz Borowski said that the company is profitable in Vietnam and plans to achieve the same in Indonesia and India this year.

The startup is now looking to secure series B money – a mix of debt and equity – for debt portfolio purchasing. The funding will assist lenders in cleaning up their balance sheet, as Covid-19 could lead to a surge in NPLs, it said.