Bengaluru: Prodigal, which makes intelligence software for loan servicing and collection operations, has raised $12 million in a Series A funding round led by Menlo Ventures along with participation of existing investors Accel, Y Combinator and MGV.

Industry veterans like Plaid COO Eric Sager, former American Express executive Anand Joshi and Carlypso cofounder Nicholas Hinrichsen have also participated in the funding round.

Founded in 2018 by Shantanu Gangal and Sangram Raje, Prodigal uses conversational AI to provide lenders and collections agencies insights from key customer interactions and offload repetitive tasks from agents to AI solutions.

The US-based startup plans to use the funds raised to expand its suite of intelligent workflow and optimisation products that enable clients to boost their productivity, and better serve customers. The proceeds will also be used to expand its team.

Prodigal’s R&D team is based out of Mumbai, and headed by Raje. The startup aims to grow its India team across various functions including engineering, product and go-to-market by four-fold over the next year.

“Lenders lose about a third of their time to routine tasks like filling out paperwork or following up with customers after calls,” Gangal said. “Prodigal automates many of these processes, freeing up an enormous amount of time for agents to focus on the human side of interactions with customers. This improves the speed and transparency of decision making while decreasing cost of loan operations.”

Prodigal’s decision engine helps lenders minimize customer complaints by analysing those communications and giving agents prompts like when to follow up with customers or how to adjust communications strategies based on customer feedback. Among its customers include Fundbox, Sequium, PennCredit, Unifin and Vital Solutions.

“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,” said Croom Beatty of Menlo Ventures.

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