Montréal-based debt collections technology provider Lexop has been acquired by California-based loan collection platform Eltropy for an undisclosed amount.
As part of the acquisition, Lexop will be integrated into Eltropy and begin operating under its brand name. Eltropy said in a statement that the combined company will continue to operate from both Eltropy’s headquarters in Santa Clara, California and Lexop’s headquarters in Montréal.
BetaKit reached out to both Eltropy and Lexop for more details on the deal, but did not hear back by press time.
Eltropy’s platform is meant to help community financial institutions (CFIs), like credit unions and community banks, collect on outstanding debt with automated text messaging, payments processing, and fraud prevention.
Eltropy said in a statement that, by acquiring Lexop, it now has a self-serve solution that “prevents avoidable delinquency” by making it easier for borrowers to make payments before a due date.
“Today’s phone-call-driven experiences are extremely inconvenient for the borrower, making it difficult for CFIs to collect debt payments on time,” Eltropy CEO and co-founder Ashish Garg said in a statement. “By combining Lexop’s people-first collections technology with our AI-driven communications platform, we’re delivering an offering that increases effectiveness with empathy.”
Founded in 2016, Lexop’s platform helps credit union, financial, and enterprise clients automate communication with, and collect payments from, their borrowers. Its platform also provides analytics to clients about engagement, daily payment activity, and member preferences.
The company scored the first-ever partnership between a subsidiary of Québec telecommunications giant Quebecor and a seed-stage startup when it integrated its collections solution into the customer accounts department of Vidéotron in 2019.
Lexop went on to raise a $1.8-million seed round led by Anges Québec in 2020, and then an undisclosed amount as part of an “expansion round” led by Boston-based venture capital firm Companyon Ventures in 2022.
Feature image courtesy Scott Graham via Unsplash.