Canadian AI startup Symend has nearly doubled the size of its Series B round with a new $43 million extension.
The Calgary-based startup raised a Series B in May 2020 but has since added new financing from existing lead investors Inovia Capital.
The company says it uses AI and behavioral science to help identify and support customers who might struggle to keep up with payments, on behalf of businesses such as telecoms and financial institutions. The idea is to flag these customers early so firms can extend credit or take other measures to help.
"We hit all our targets for the year that we had in mind," Symend cofounder Hanif Joshaghani told Insider. "We've expanded our coverage into financial institutions and increased our global footprint. We want to be disruptive so it's good to put our foot on the gas."
Symend, founded in 2016, claims to have helped over 10 million at-risk customers to date through its platform. The initial Series B funding consisted of $47 million in venture capital plus $5 million in financing from Silicon Valley Bank. The company had only raised $1.2 million prior to this round, per Crunchbase. Other investors include Ignition Partners, Impression Ventures, BDC Capital's Women in Technology Fund, Mistral Venture Partners.
"We said if we can get a quick financing done without distracting the team and impacting execution that would be good despite being very liquid already," Joshaghani added. "We have a very aggressive product roadmap in new verticals but they want to work with companies with strong enterprise durability so we needed a better balance sheet to show to companies, that was a critical priority."
Symend's research has concluded that customers don't want to be "talked at," said cofounder Tiffany Kaminsky. The company's aim is to reduce the use of third-party "predatory" collection agencies.
The startup will use the funding to increase user capabilities by investing in its platform as well as continuing its geographic expansion, Kaminsky added. Symend has opened an office in Sydney, Australia to cover Asia-Pacific, has a team covering Latin America in Spanish and could look to grow its offering into Europe in the future.
Check out Symend's pitch deck below: