Building AI-Driven Debt Collection
ClearGrid aims to modernize debt collection and recovery with AI, helping banks, fintechs, and lenders recover more debt without resorting to customer harassment. The Dubai-based startup, which emerged from stealth with $10 million in funding, uses AI to automate the collections process and personalize outreach across communication channels.
The Story Behind ClearGrid
ClearGrid’s CEO, Mohammed Al Zaben, stumbled into the debt collection space after selling his previous startup, Munch:On, to Careem in 2022. While taking time off, Al Zaben reflected on one of Munch:On’s biggest challenges: collecting payments from corporate customers. This led him down a rabbit hole into receivables management and unpaid invoices, ultimately realizing consumer collections posed an even bigger problem.
Al Zaben and his co-founders, Khalid Bin Bader Al Saud and Mohammed Khalili, sensed an opportunity to create software and AI to streamline recovery and collaborate with existing vendors in the space.
Automated Collection Components
ClearGrid’s AI models score things like repayment likelihood, help predict customer behavior, and personalize outreach across communication channels. The company claims its AI voice agents handle hundreds of thousands of calls daily, with 95% of its operations fully automated.
Borrowers preferring human interaction can engage in direct conversations, and the platform feeds the insights into the startup’s many models. ClearGrid’s platform categorizes borrowers based on their ability and willingness to pay, then structures repayments into smaller, manageable chunks, nudging them toward repayment without coercion.
Impact and Future Plans
ClearGrid has managed hundreds of millions in debt portfolios and signed ten major fintechs and banks in the UAE. An unnamed major bank increased recovery rates by 30% and cut collection costs in half, while a leading buy now, pay later (BNPL) provider doubled recoveries by automating early-stage debt resolution.
ClearGrid resolves debts twice as fast as traditional collection agencies, achieving between 38% to 50% resolution rates, while borrowers interact with the platform 60% more than they do with these agencies.
The company plans to “10x” revenue and accounts managed in 2024 and double its engineering team in the next fiscal quarter to build what Al Zaben calls the “definitive credit orchestration infrastructure for the region.”
Frequently Asked Questions
What is ClearGrid?
ClearGrid is a Dubai-based startup that uses AI to modernize debt collection and recovery for banks, fintechs, and lenders.
What is the goal of ClearGrid?
ClearGrid aims to help lenders recover more debt without resorting to customer harassment, while also building trust with borrowers.
How does ClearGrid work?
ClearGrid’s AI models score things like repayment likelihood, help predict customer behavior, and personalize outreach across communication channels. The company’s platform categorizes borrowers based on their ability and willingness to pay, then structures repayments into smaller, manageable chunks, nudging them toward repayment without coercion.
What is the potential impact of ClearGrid?
ClearGrid has the potential to resolve debts twice as fast as traditional collection agencies, achieving between 38% to 50% resolution rates, while borrowers interact with the platform 60% more than they do with these agencies. The company also claims it can cut collection costs by 50%.
Who has invested in ClearGrid?
ClearGrid has received funding from Middle East and North Africa-focused VCs Beco Capital, Nuwa Capital, and Raed Ventures, as well as prominent angel investors such as Anu Hariharan, Amjad Masad, Jason Gardner, Justin Kan, and Kenneth Lin.
