Avtal, an Austin, TX-based digital engagement platform provider, has raised $24 million in total funding, including the Series A and the Seed funding, led by S3 Ventures, with participation from NJP Ventures.
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The company plans to use the funds to grow its engineering team and accelerate development of its platform, which helps collection agencies interact with consumers digitally while remaining fully compliant with consumer protection rules.
The Austin-based company offers collection agencies a white-labeled platform for text, email, and digital payment portals. This helps agencies reach consumers and resolve accounts faster and more transparently. Its technology lets agencies complement call-center workflows with automated compliant digital outreach, improving recovery rates, and giving Americans a clearer path to pay off debt, which reached a record $18.4 trillion in the U.S. in Q2 2025.
Avtal is a digital engagement platform that helps collection agencies boost revenue while improving the consumer experience. Although most consumers prefer self serve options for handling financial matters, many agencies struggle to offer digital solutions because of complex regulations, and the challenges of creating compliant communication workflows.
“Regulation F set clear rules for how collection agencies can use digital channels like email and text to communicate with consumers,” said John McNamara, Chief Growth Officer at Avtal and former Principal Assistant Director at the CFPB, who helped write the regulation. “The challenge has been putting those rules into practice in a scalable and compliant way. Avtal makes that possible while maintaining the highest regulatory standards.”
“Consumers increasingly want to handle financial matters on their own terms,” said Khaled Bitar, CEO of Avtal. “Avtal helps agencies meet that demand while staying compliant and improving recovery. With the support of S3 Ventures and NJP Ventures, we’re excited to grow our platform and deliver a top-tier consumer experience.”
“The best collection agencies succeed because of their operational expertise—managing portfolios, compliance, and consumer interactions at scale,” said Joe Gelbard, Founder and President of Avtal. “Avtal gives agencies the tools to bring that excellence to digital channels.”
“Debt collection is one of the largest and most operationally complex sectors in financial services,” said Charlie Plauche, General Partner at S3 Ventures, which manages over $1 billion in assets. “That complexity has made adopting modern technology harder than in most industries. Avtal solves this with a platform built specifically for the collections ecosystem.”
“Consumers want a better, more transparent way to pay their debts. What’s exciting is that improving the consumer experience and agency performance are aligned goals. This investment lets us scale that approach,” said Peter Lukens, Managing Partner at NJP Ventures.
About Avtal
Founded in 2023, by Joe Gelbard, Avtal is a digital engagement platform designed for the debt collection industry. Its platform modernizes how agencies communicate with consumers improving recovery rates while providing a better, compliant experience. Based in Austin, Texas, Avtal works with collection agencies across the U.S., offering the infrastructure for digital collections via text, email, and online payments.
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