Debtist Secures Pre-Seed Funding: A Boost for Embedded Debt Collection

Published 7 months ago

Germany-based fintech startup, Debtist, has successfully completed its pre-seed financing round. The company, which launched its product just four months ago, is already generating a five-figure monthly recurring revenue (MRR) and rapidly expanding.

Founded in 2023 by Matteo Benedetti, Tony Zabel, and Brandon Baumgarten, Debtist aims to transform receivables management by integrating legal dunning services into the core value chain of subscription management, bookkeeping, treasury management, and other B2B SaaS solutions.

Remarkable Early Momentum

Debtist operates in Germany and France, with a significant presence serving German clients in Spain, the United Kingdom, Italy, and beyond. The company is already servicing more than 30 clients throughout Europe. The startup’s inaugural funding round was led by European venture capital firms āltitude and 10x Value Partners. It also included participation from a consortium of business angels with startup operations expertise from Germany and the UK.

A Unique Technology Proposition

The debt collection market for SMEs has been ripe for innovative software solutions. Debtist’s embedded B2B2X SaaS technology offers a unique solution, addressing significant pain points of the debt collection process such as handover and transparency.

According to Matteo Benedetti & Tony Zabel, Co-CEOs of Debtist, debt collection often gets overlooked in the core value chain, despite its potential to alleviate user pain points and drive monetization for platforms. Debtist’s embedded API-based solution positions the company as the leading market player in integration and data handling for efficient SME debt collection services, adds CTO Brandon Baumgarten.

Towards a Seamless Future

Debtist envisions a future where SMEs can seamlessly manage their debt collection within their existing software suites. This industry standard could lead to a tenfold improvement in service and product quality, and platforms can expect increased user engagement, retention, and revenue.

To realize this vision, the Debtist founding team plans to use the recently raised funding to further improve its product and expand its team, focusing particularly on hiring software engineers.

Both āltitude and 10x Value Partners have expressed their enthusiasm for backing Debtist. They cited the startup’s core mission of bridging the technology gap in the realm of debt collections for SMEs, and its impressive pace of execution in a market lacking innovation as key factors in their decision. Debtist’s embedded technology is solving a significant pain point for SMEs often overlooked by large debt collection services firms, further reinforcing the investors’ confidence in the startup.