Prodigal raises $12M in a Series A round led by Menlo Ventures
At a Glance
Prodigal, a debt management and collection firm, has acquired $12M in Series A funding to expand its suite of cognitive workflow and optimization solutions, which enable businesses to boost efficiency, improve customer care, and boost profitability.
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Prodigal, a loan servicing and collection software provider, has raised $12 million in a Series A funding round led by Menlo Ventures. Other participants include Accel, Y Combinator, MGV, and industry experts such as Eric Sage, COO of Plaid; Anand Joshi, ex-American Express; and Nicholas Hinrichsen, CEO of Carlypso.
Prodigal, which has an engineering branch in Mumbai, will use the funds to develop its range of intelligent workflow and optimization tools, which help companies increase productivity, better service customers, and increase profits.
Prodigal will focus on growing its team after experiencing an 8X increase in the previous year. In the next 12 months, it plans to double the size of its India team in engineering, product, and go-to-market operations.
Shantanu Gangal, Saransh Garg, and Sangram Raje, all IIT Bombay grads, started Prodigal in 2018. Saransh, on the other hand, split ways in 2019 and in 2020 established Nova Benefits, an employee benefits platform focused on corporate health insurance.
Prodigal’s decision engine, according to the company, can help companies increase recovery rates, optimize operations, and reduce compliance risks while also teaching agents on how to improve customer interactions. So far, Prodigal has examined approximately 15 million loan accounts. It claims to have helped clients boost productivity by up to 30% and remove 98 percent of compliance errors, resulting in a 2.5x return on investment.
Prodigal turns interactions into insights. These standardized and structured insights flow between stakeholders like loan originators, capital providers, agencies, and customers. This improves the speed and transparency of decision making, delivering a customer-first experience while decreasing cost of loan operations.Shantanu Gangal, CEO and co-founder of Prodigal
He added that routine chores such as filling out paperwork and following up with clients after phone calls take up approximately a third of a lender’s time. Many of these procedures are automated by Prodigal, saving up a significant amount of time for agents to focus on the human element of their interactions with consumers.
Over the past 10 years, the vast majority of innovation in lending has focused on customer acquisition and underwriting, but the actual post-funding interactions with customers remain entirely manual, leading to mediocre customer experiences. We’re excited to see Prodigal automate some of these busted workflows.Croom Beatty, a principal at Menlo Ventures