After a big pivot and a lot of elbow grease, we are thrilled to announce that Lexop has raised a $1.8 million seed round led by Anges Québec, Canada’s largest angel investors network, with strategic participation from a major Canadian financial institution.
The new funds will help us speed up product development and fuel our sales and marketing. We are expecting to double in size in the coming year.
Back in 2016, Amir Tajkarimi, CEO of Lexop, and Jean-Olivier Bouchard, Head of Growth of Lexop, co-founded the company with one goal in mind: to create the best legal file sharing and proof of service tool.
Fast forward four years, a stint at 500 Startups, and some well-timed advice from Matt Wegner, Uber’s Global Head of Payment Partnerships, our team has a new mission: to remove friction from in-house collections.
Our SaaS solution offers a smooth and flexible self-service payment experience to tens of thousands of past-due customers – every day.
We integrate seamlessly with our clients’ payment gateway and operate completely out of sight of the end consumer.
Our platform allows customer agents and business analysts to automate outreach for thousands of accounts, track customer interactions in real-time and continuously improve their collection campaigns using behavioural data and analytics.
“Tracking interactions in real-time is an indispensable asset for the preparation of our performance reports. We immediately know how many emails were sent, opened, read and if payments or payment attempts were made. We can then quickly contact clients and offer them payment alternatives adapted to their needs.“ – Danny Goode, Senior Credit Risk Analyst, Videotron
Barely one-year post-pivot and we’ve landed our first enterprise client, Videotron, Canadian leader in telecommunications and entertainment.
We aim to keep expanding our SaaS offering directly to world-class telecommunication, financial and utility companies across Canada and the United States.
‘’The collections industry is notoriously unsexy, downright taboo...and perfectly ripe for disruption.” – Amir Tajkarimi, CEO, Lexop.
For decades, collections have been stuck in postal system mode.
Convoluted, riddled with manual tasks, the thing was a bureaucratic nightmare.
You had to get on the phone, jump through hoops and argue with customer service to settle on a simple payment arrangement.
In other words, consumers were boxed-in. They had no options nor flexibility to pay their past due invoices.
This process has real consequences for both companies and customers:
- It puts undue pressure on customers already facing a stressful situation.
- It hurts companies’ brands, decreases customer retention, and ultimately hits their bottom line.
Now here comes the crux of the problem…
Millions have outstanding balances not because they are delinquent payers – but because they haven’t been reached or engaged in a way that suits them.
Our team believes that empowering customers with the choice of when and how to pay their outstanding balance is key.
And we have the results to prove it. Check out our Videotron case study.
The tides are changing...
Younger consumers are playing an increasing role in the collections market.
They also operate differently.
We’ve interviewed over 2000 Canadian Generation Z/Millennials and found that 58% prefer to be reached via email or SMS and 68% prefer to pay online.
The bottom line is: more and more consumers want flexibility, and companies that put customers first are rewarded with higher self-cure rates and better retention.
This milestone wouldn’t have been possible without our first enterprise client, Videotron.
Videotron has been a client since January 2019.
In less than 6 months, the company has seen its collection rate increase by 27%, its operational costs decrease by 10% and an 11% reduction in the number of accounts sent to collection agencies.
Our team is proud to have directly impacted their bottom line. Videotron has been able to reduce its provision for credit losses and reallocate these savings elsewhere.
"We explored many interactive solutions that promised to optimize our collection process. Lexop was the most non-intrusive and agile solution that firmly aligned with our mission to put the customer first.” – Antoinette Noviello, Vice President and Corporate, Videotron
Next to come
To maintain our momentum, we will be hiring top engineering and sales talent. (See our job openings).
Our product roadmap includes expanding our suite of integrations, adding new features to our data dashboard and improving the granularity of our behavioural data.
What our investors have to say…
Michel Lozeau, angel investor and Vice-Chairman of the Board at Anges Québec: “The members of Anges Québec are thrilled to participate in this new round of funding with Lexop, which should position this North American player to achieve critical mass in the in-house collections market.”
Lexop is changing collections and impacting the lives of tens of thousands of people every day. Its customer-centric SaaS platform helps world-class companies remove friction from collections by offering their past-due customers the most flexible self-service payment experience.
Victor is Lexop's Content Specialist. He writes about Fintech's impact on both world-class companies and the lives of everyday people.