KredosAi Raises $7M in Series A Funding Led by BMW i Ventures

The round also saw participation from Motley Fool Ventures and Walter Ventures, alongside existing investors Okapi Venture Capital, StartFast Ventures, SaaS Ventures, and Stout Street Capital.

The company will use the funding to expand into the financial services and auto lending markets, accelerate product development, and grow its team by two to two-and-a-half times over the next 12 months.

KredosAi develops an AI-powered customer engagement platform that helps businesses improve debt collections by personalizing customer outreach. Using behavioral science and machine learning, the platform identifies the best message, communication channel, and timing for each customer, helping increase repayments while maintaining long term customer relationships.

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The company addresses a major challenge for large businesses, where millions of customer accounts can become overdue, tying up 10% to 15% of revenue and leading to bad debt costs that can exceed $1 billion each year for some organizations.

KredosAi partners with FICO to integrate its AI-powered customer engagement technology into the FICO Platform and serves enterprise customers, including Anderson Brothers Bank. Over the past two years, the company has processed more than 200 million customer interactions and increased its revenue by more than six times.

“We were drawn to KredosAi because of the strength of the team, the company’s differentiated approach to combining behavioral economics with AI, and the clear data network effects behind the product,” said Baris Guzel, Partner at BMW i Ventures. “In an environment where enterprises are under more pressure to improve retention, we saw a compelling opportunity for a solution that can create meaningful value at scale.”

KredosAi said its platform has demonstrated measurable results across its enterprise customer base, including an 11.5% reduction in write-off rates and a 13.6% increase in customer lifetime value. The company said those improvements have generated more than $50 million in annual bottom-line benefits for some Fortune 50 clients by preventing accounts from progressing to traditional third-party collections.

“We built KredosAi because we lived this problem from inside some of the largest enterprises in the world,” said Balaji Sridharan, chief executive officer and co-founder of KredosAi. “Even companies that invest heavily in customer loyalty abandon that standard the moment a payment is late. The legacy approach—the same message, the same channel, sent to millions of people—does little to solve the problem and a lot to damage the relationship.”

About KredosAi

Founded by Balaji Sridharan and David Thoms, KredosAi provides an AI-powered customer engagement platform that helps telecom companies, auto lenders, and financial institutions improve payment collections and reduce customer churn. The platform uses behavioral science, and artificial intelligence to deliver the right message through the right channel at the right time replacing traditional one-size-fits-all campaigns with personalized customer engagement.

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