Lippstadt, Germany: on 8 December 2021, the debt collection FinTech troy announced that Transaction Capital will become a new investor and strategic partner for its international expansion. troy receives an eight-figure investment to cement its position as the customer experience leader in debt collection and drive forward its geographic expansion strategy in multiple markets. Existing investors also participated in this multi-stage financing round.
Transaction Capital is a Johannesburg-listed financial services company whose business unit “Transaction Capital Risk Services” is active in receivables management in the South African and Australian market.
The financial investment by Transaction Capital underpins the strategic importance of this partnership. By licensing troy’s debt collection platform, which has won numerous awards for its market-leading customer experience (“troy_experience”), Transaction Capital plans to unlock new market segments in South Africa and Australia. For troy’s international clients, this means that the troy_experience will also be available in Australia and South Africa to optimize recovery rates and customer retention.
Furthermore, the cooperation aims to combine the tangible collection advantages of troy’s approach with the financial strength of Transaction Capital to purchase non-performing loans (NPL) at scale. This creates an attractive bundle for NPL sellers, as Transaction Capital is a prestigious financing partner, troy’s performance will allow for competitive prices, and portfolios will be managed with the best possible collection experience. In this regard, NPL sellers will not have to rely on promotional assurances from buyers regarding the collection experience. Via the “troy_seller” web portal, which will be released in early 2022, they can monitor how troy is delivering on the promise of the best possible collection experience, with drill-down possibilities to the level of individual interactions with payers. This supports the sellers’ ESG goals, which have become vital in the NPL ecosystem. The partnership has already won a major German bank with this unique package.
Philip Rürup, Founder and CEO, troy gmbh
“When we started our journey, we decided to focus on excellent customer experience and to design the platform for international scalability. This strategy is paying dividends now. Our platform approach allows us to partner with a regional debt collection leader like Transaction Capital while achieving an internationally homogeneous, optimal customer experience. This makes troy the perfect match for international brands with a rigorous focus on customer experience.”Philip Rürup
Founder and CEO of troy
“Thanks to best performance, TCRS is the market-leading debt collection provider in South Africa, and we are also among the leading service providers in Australia. The partnership with troy will enable us to tap into the ‘early collection’ segment in our core markets and strengthen our regional expansion into Europe and the US.”Stephan Venter
Group Executive of Transaction Capital Risk Services (TCRS)
“As a venture capital firm, we always have to evaluate very carefully what influence a strategic investor has on the development opportunities for our portfolio companies. By partnering with Transaction Capital, we have succeeded in combining the best of both worlds: to fully leverage the great opportunities of a strategic cooperation without limiting troy’s ‘venture path’. My thanks go to both troy’s and TCRS’ management, who acted not only in a pragmatic fashion but also demonstrated great vision for the business going forward.”Willi Mannheims
Managing Partner at eCAPITAL (and troy’s largest investor)
Zelig acted as exclusive strategic and financial advisor to troy.
troy is a FinTech company that specializes in customer-friendly digital debt collection. The startup optimises the customer experience in debt collection and thus maintains the customer relationship, using tools and methods from marketing and CRM combined with data and machine learning.
In November 2021, troy was awarded Gold Awards for “Best Digital Customer Experience Financial Services” and for “Customers at the heart of everything <1,000 employees” by globally recognized CX experts at the International Customer Experience Awards (iCXA).
Thanks to troy_platform, troy can comply with country-specific regulations while achieving an internationally homogeneous, optimal customer experience. Thus, troy is the ideal partner for international brands with the highest customer experience standards.
Today, troy serves the DACH and Benelux markets. To accompany a leading international insurance group, troy will launch in France in the first half of 2022. Thanks to the cooperation with Transaction Capital, Australia, and, as anchor markets of the African continent, South Africa will be added.
troy focuses on corporate clients with large-volume B2C and B2SME businesses. Thanks to the optimal customer retention within the collection process, clients in industries with high customer acquisition costs benefit particularly. Therefore, market-leading companies in the telecommunications, eCommerce, publishing, insurance, banking, and utility industries are among the clients. For more information visit https://www.troy.de.
About Transaction Capital Risk Services (TCRS)
TCRS combines its unique technology, data and analytics competencies to provide a range of digitally enabled business services as a trusted partner to a global client base contributing to the financial sustainability of the communities it serves. TCRS’ diversified business model reduces concentration risk and supports performance in different market conditions. TCRS is diversified by business activity across collection, transactional and value-added services. Within its most significant business activity, collection services, TCRS acts as both a principal in acquiring and then collecting on nonperforming loan portfolios, and as an agent on an outsourced contingency or fee-for-service (FFS) basis. TCRS, via TC Recoveries, is the prominent acquirer of NPL portfolios in the South African market, investing over €50m per year, whilst, via Recoveries Corporation, is one of the prominent contingency collection and PDL acquisition platforms in Australia, managing over €750m in face value at any time and investing over A$20m in NPL portfolios per annum. TCRS is a wholly-owned division of Transaction Capital Limited, which is listed on the Johannesburg Stock Exchange with a current market capitalisation in excess of €2bn. For more information visit www.transactioncapital.co.za
Zelig is an independent investment banking firm focused exclusively on FinTech and related technologies. With a core team in London, New York and Mumbai, supported by a network of senior advisers around the world, we provide M&A and capital raising advice to entrepreneurs, corporates and investors globally. For more information on Zelig, please reach out to us or visit https://www.zeligfintech.com.