DPDzero, an Indian startup using AI to help banks and NBFCs recover debt, raises $7 million

Debt collection startup DPDzero has raised $7 million in a Series A funding round to develop AI-driven debt recovery infrastructure, the startup announced this week.

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The round was led by Japanese venture capital firm GMO Venture Partners, SMBC Asia Rising Fund, and Blume Ventures, with participation from India Quotient, Sinarmas Group, and other investors. Blume Ventures and India Quotient are existing investors.

Founded in 2022 by Ananth Shroff and Ranjith B. R., Bengaluru-based DPDzero operates an AI-powered platform that automates and streamlines debt collection for financial institutions. Its clients include a mix of banks, non-banking financial companies (NBFCs), fintech firms, and microfinance institutions, such as RBL Bank, IndusInd Bank, L&T Finance, Manappuram Finance, Tata Capital and Moneyview.

The startup plans to use the raised capital to expand its AI capabilities and establish a nationwide network of professional field collection agents. It aims to deliver more ethical and efficient debt recovery across both digital and in-person channels.

“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,” said Ananth Shroff, CEO & Founder of DPDzero.

The startup's platform leverages behavioral data, AI virtual agents, and human operations to engage with borrowers across multiple communication channels. By segmenting borrowers based on risk and repayment behavior, it seeks to improve recovery outcomes for lenders in a sector often criticized for its opacity and aggressive tactics.

DPDzero claims to have seen a sixfold increase in revenue over the past 18 months and has processed collections for over 10 million borrowers. It currently manages active recovery operations involving 1.8 million borrowers per month.

With the fresh capital, the startup also intends to roll out its own cadre of field collection agents, beginning in Bengaluru and expanding to high-volume lending states like Maharashtra and Uttar Pradesh.

“Over the past decade, GMO VenturePartners 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,” said Ryu Muramatsu, Founding Partner of GMO Venture Partners.

DPDzero has previously raised $4.7 million from investors including Better Capital and Anmol Maini Ventures, according to data from Tracxn.