Heavily backed digital debt collection firm InDebted, which was most recently valued at just over $200 million, has bought out smaller family-owned fintech rival Reminda, in a deal that signals an end of a recent cost-cutting drive.in 2022, it combined the $22.5 million cash injection with a redundancy round of 40 staff, as the tech sector tightened its belt.
InDebted acquired Reminda from the Cains family, which had run it for more than three decades. The company did not disclose the acquisition price, butIndebted’s co-founder and chief executive, Josh Foreman, said Reminda was profitable and would help InDebted reach a new segment of clients.
He said the sharp increase in interest rates, coupled with high inflation, was driving customer growth, particularly in the US, where companies had struggled to find enough professionals to call customers in financial hardship and restructure payment plans during the global financial crisis. While Australian consumers continued to be “incredibly resilient”, Mr Foreman said, the US was starting to see an increase in delinquencies, which describes anyone who has missed a repayment.