Debt Collection Startup January Raises $12M in Series B Funding

Debt collection firm January raises $12 million in Series B funding, led by IA Ventures. As credit card debt reaches all-time highs, January's technology-enabled collections agency aims to address the increasing need for robust debt collection software.

January's digital-first approach focuses on improving recovery rates while providing borrowers with a self-serve way to manage and resolve debts. CEO Jake Cahan emphasizes the company's efficiency, with a single agent capable of handling over 150,000 accounts, a significant increase compared to traditional firms.

Amid rising debt levels and delinquencies, January's interface, leveraging both first-party and third-party data, enhances transparency and compliance. The company has doubled revenues and client count since its Series A funding in March 2022, serving top-20 card issuers, banks, fintechs, credit unions, and debt purchasers.

January's successful funding round includes participation from existing investors Brewer Lane Ventures, Third Prime, and Reciprocal Ventures, along with new investors Upper90 and Shrug Capital.