California-based Prodigal, which offers loan management and collection software, announced Thursday a $12 million A-Series fundraiser led by Menlo Companies.
Participating and existing investors, including Accel, Y combiner, and MGV, and loan industry veterans like Eric Sage (COO, Plaid), Anand Joshi (formerly American Express) and Nicholas Hinrichsen (CEO, Carlypso), also joined the round.
This new funding will allow Prodigal – which has its engineering division in Mumbai – to expand its suite of smart workflow and optimization products that enable customers to increase productivity, better serve customers and optimize results.
With 8x growth over the past year, Prodigal will also focus on expanding its team. This will quadruple the Indian team over the next 12 months across engineering, product and go-to-market functions.
Founders (LR): Sangram Raje and Shantanu Gangal
“Prodigal transforms interactions into information. This standardized and structured information flows between stakeholders such as loan originators, capital providers, agencies and clients. This improves the speed and transparency of decision-making; deliver customer experience first while lowering the cost of lending operations,” said Shantanu Gangal, CEO and Co-founder of Prodigal.
“Lenders waste about a third of their time on routine tasks like filling out paperwork or following up with customers after calls. Prodigal automates many of these processes, freeing up a huge amount of time for agents to focus on the human side of their customer interactions,” he added.
The startup’s decision engine claims to help customers maximize recovery rates, optimize operations and minimize compliance risk while coaching agents to improve communication with customers.
Prodigal has analyzed over 15 million loan accounts to date. He claims to have helped his clients increase productivity by up to 30% and eliminate 98% of compliance errors, delivering a 2.5x return on investment.
“Over the past 10 years, the vast majority of innovation in lending has focused on acquiring and onboarding customers, but the actual post-funding interactions with customers remain entirely manual, which leads to poor customer experiences. We are excited to see Prodigal automating some of these disrupted workflows,” said Croom Beatty of Menlo Ventures.
Prodigal was founded in 2018 by IIT Bombay graduates Shantanu Gangal, Saransh Garg and Sangram Raje. However, Saransh parted ways in 2019 and launched Nova Benefits, a benefits platform focused on corporate health insurance, in 2020.
As part of Y Combinator’s 2018 summer batch, Prodigal had raised seed money from the US incubator the same year.