Bad Dürkheim (Germany), 5 October 2023 – Debtist, a FinTech startup from Germany, is announcing the successful completion of its pre-seed financing round. The company, founded in early 2023 by Matteo Benedetti, Tony Zabel and Brandon Baumgarten, is poised to redefine the landscape of receivables management by seamlessly integrating legal dunning services into the core value chain of subscription management, bookkeeping, treasury management, and other B2B SaaS solutions.
Since its product launch just four months ago, Debtist has garnered remarkable momentum, already achieving a five-figure monthly recurring revenue (MRR) and continuing to grow quickly. Operating in Germany and France, with a strong presence serving German clients in Spain, the United Kingdom, Italy, and beyond, Debtist is already counting more than 30 clients throughout Europe.
The startup’s first-ever funding round was led by European venture capital firms āltitude and 10x Value Partners and saw the participation of a consortium of notable business angels with expertise in startup operations from Germany and the UK.
As the world is witnessing a transformative shift towards embedded solutions across all sectors, especially in cases where platforms struggle to provide additional services that are integral to enhancing their user value, the debt collection market for SMEs has been long overdue for innovative software solutions. Debtist's embedded B2B2X SaaS technology offers a unique proposition, benefiting both platforms and users while addressing significant pain points of the debt collection process, such as handover and transparency.
"Embedded solutions have become a cornerstone of most software platforms. However, the core value chain often overlooks debt collection. After all, due to its ability to alleviate a substantial user pain point and drive advantageous monetization for platforms, debt collection is particularly appealing to build technology for," explain Matteo Benedetti & Tony Zabel, Co-CEOs of Debtist.
"Our embedded API-based solution stands head and shoulders above the competition, positioning Debtist as the undisputed market leader in integration and data handling for efficient SME debt collection services," adds CTO Brandon Baumgarten.
Looking ahead, Debtist envisions a future where SMEs can seamlessly manage their debt collection within their existing and familiar software suites. If this vision becomes the industry standard across various sectors, users stand to benefit from a tenfold improvement in service and product quality, while platforms can expect increased user engagement, retention, and revenue.
To turn its vision into reality, the Debtist founding team is planning to use the recently raised funding to further improve its product and grow its team, with a particular focus on hiring software engineers.
“We were particularly drawn to back Debtist as the team’s core mission of bridging the technology gap in the realm of debt collections for SMEs is very much aligned with our firm’s investment thesis of ‘closing the SME tech gap in Europe’. We are impressed by the team’s exceptional pace of execution, taking on a market that has not seen any true innovation in a long time,” says Marc Penkala, General Partner at āltitude.
“As B2B software investors, we are intrigued by Debtist’s highly cashflow-accretive business model. The company’s embedded technology is solving a true pain point for SMEs that are often overlooked by large debt collection services firms, which is why we are excited that the founding team’s hypothesis is already seeing confirmation by an incredible pull from the market”, adds Christian Schroeder, Founder & CEO of 10x Value Partners.
Debtist is a forward-thinking German Fintech startup, founded in 2023, on a mission to transform receivables management for B2B SaaS companies through its innovative Embedded Collections solution. With a strong focus on enhancing user experiences and platform monetization, Debtist is at the forefront of revolutionizing how businesses handle debt collection within their software ecosystems. To learn more about Debtist, visit www.debtist.de.