Bengaluru-based debt collection startup DPDzero has successfully raised $7 million in Series A funding, marking a major step toward modernizing India’s debt recovery landscape. The funding round, announced this week, brings together a global roster of investors eager to back the company’s mission to reinvent debt collection using AI-driven technology and ethical practices.
Funding Round Details and Investors
The Series A funding round was led by GMO Venture Partners, a prominent Japanese venture capital firm. They received support from SMBC Asia Rising Fund and Blume Ventures, with India Quotient, Sinarmas Group, and other strategic investors also participating.
Blume Ventures and India Quotient, two of DPDzero’s early backers, increased their stake in this round, reinforcing their belief in the startup’s growth potential and disruptive vision. This latest funding comes after DPDzero previously raised $4.7 million from investors such as Better Capital and Anmol Maini Ventures, according to Tracxn data.
The company plans to use the new capital to:
- Enhance AI capabilities for predictive and personalized debt collection.
- Expand its nationwide network of professional field collection agents.
- Strengthen ethical and digital-first recovery channels to support lenders.
This funding signals investor confidence in India’s under-served collections segment, a market ripe for technology-led transformation.
DPDzero’s Mission: Reinventing Debt Recovery in India
Founded in 2022 by Ananth Shroff and Ranjith B. R., DPDzero aims to modernize the debt collection process, which has historically relied on manual operations and aggressive practices.
CEO and Founder Ananth Shroff highlighted the company’s core mission at the announcement:
“Collection has been the ignored stepchild of lending; it’s low tech, low intelligence, and worryingly, low ethics, as well. We are building the collections company India has been waiting for – reinventing everything from the ground up, bringing back the dignity it really deserves.”
The company’s approach emphasizes efficiency, transparency, and respect for borrowers, differentiating itself in a sector often criticized for its opaque processes and harsh tactics.
How DPDzero Leverages AI to Improve Collections
DPDzero operates an AI-powered platform that automates and streamlines debt recovery for its clients. Its customers include a diverse mix of financial institutions, such as:
- Banks: RBL Bank, IndusInd Bank
- Non-Banking Financial Companies (NBFCs): L&T Finance, Manappuram Finance, Tata Capital
- Fintech Firms and Microfinance Institutions: Moneyview and others
The platform integrates behavioral data analytics, AI-driven virtual agents, and human-led operations to segment borrowers and engage effectively.
Here’s how the technology-driven process works:
- Risk Segmentation – The platform analyzes borrower repayment behavior and risk profiles to prioritize outreach.
- Omnichannel Engagement – Borrowers receive personalized communication through calls, texts, emails, and app notifications.
- AI Virtual Agents – Automated bots initiate early-stage conversations and nudge borrowers toward repayment without harassment.
- Human Operations – Skilled human agents handle complex cases, providing a balance between technology and personal interaction.
This hybrid model enables faster, ethical, and scalable debt collection, addressing lenders’ needs while reducing borrower stress.
Rapid Growth and Market Traction
Since its launch, DPDzero has grown at an impressive pace, fueled by demand for professionalized collections in India’s rapidly expanding credit market.
Key growth highlights include:
- Sixfold revenue growth over the past 18 months.
- 10 million borrowers processed through its platform to date.
- 1.8 million active borrowers engaged per month in ongoing recovery operations.
This performance demonstrates strong market adoption and validation of its AI-driven approach, which appeals to lenders seeking higher recovery rates with lower reputational risk.
Plans for Expansion: Nationwide Field Collection Network
While DPDzero thrives in the digital debt recovery ecosystem, the startup recognizes that field collections remain critical in India’s diverse credit landscape.
With the fresh Series A capital, DPDzero will:
- Deploy a cadre of professional field collection agents, starting in Bengaluru.
- Expand operations to high-volume lending markets, including Maharashtra and Uttar Pradesh.
- Combine digital and in-person efforts to improve recovery rates for lenders with large, geographically distributed portfolios.
This phygital model—integrating physical and digital touchpoints—will allow the startup to cover the entire spectrum of borrower behavior, from cooperative to hard-to-reach customers.
Investor Confidence in DPDzero’s Vision
Investors see DPDzero as a pioneer in a long-neglected segment of India’s fintech ecosystem.
Ryu Muramatsu, Founding Partner of GMO Venture Partners, shared his excitement:
“Over the past decade, GMO Venture Partners has been deeply committed to India’s fintech ecosystem. As the credit landscape matures, collections remain its most under-served frontier. We believe DPDzero is building the foundational collections infrastructure by combining AI, execution-first DNA, and the kind of founder obsession required to disrupt the category. We’re proud to back Ananth and Ranjith as they reimagine collections for India.”
The support from both new and returning investors reinforces DPDzero’s position as a category-defining company. It also reflects a broader trend where AI and ethical practices are becoming cornerstones of modern fintech solutions.
Why DPDzero Stands Out in India’s Fintech Landscape
India’s lending ecosystem has grown exponentially, with digital loans and NBFC offerings reaching millions of new borrowers. However, collections have lagged behind, often relying on manual methods, aggressive recovery agents, and minimal technology.
DPDzero’s unique proposition lies in:
- AI-Driven Collections – Predictive models improve efficiency and reduce default rates.
- Ethical Borrower Engagement – Respectful communication protects lender reputation and supports borrower trust.
- Omnichannel Recovery Operations – Combines digital nudges with field agents for comprehensive coverage.
- Scalable Infrastructure – Capable of handling millions of borrower interactions monthly.
- Strong Market Validation – Partnerships with leading banks, NBFCs, and fintech players confirm the platform’s reliability and performance.
This differentiation positions DPDzero as a key enabler for lenders who want sustainable and compliant collections in a highly regulated market.
Shaping the Future of Ethical Collections in India
With the $7 million Series A funding, DPDzero is poised to redefine debt collection in India. The company combines technology, ethics, and operational expertise to create an infrastructure that benefits lenders and borrowers alike.
By scaling its AI capabilities, expanding its field operations, and maintaining borrower-centric practices, the startup aims to:
- Increase lender recovery rates.
- Reduce borrower distress and harassment incidents.
- Set new benchmarks for transparency and efficiency in India’s financial services sector.
DPDzero’s rapid growth and strong investor backing underline a paradigm shift in how India will manage collections in the coming years—moving from aggressive, opaque tactics to data-driven, dignified solutions.
Also Read – Building Brand Loyalty as a Startup