Inicio AI, a Coventry-based FinTech company, has secured £2.6M in seed funding to transform how organisations assess affordability for customers, including for those in financial difficulty. This investment follows their recent victory in the OneToWin pitch competition at Birmingham Tech Week.
The funding round includes a £500,000 investment from the West Midlands Co-Investment Fund (WMCO), managed by Midven, part of Future Planet Capital, alongside £500,000 from Rigby Group PLC, £300,000 from Haatch Ventures, and further investment from Morgan Stanley, Angel Academe, Mint Ventures and individual angel investors.
Inicio AI impressed judges with their innovative online affordability solution that streamlines the traditional assessment process. Their virtual agent, “Budgie,” uses conversational AI to guide customers through the assessment, making it more user-friendly and improving completion rates. This enables organisations to gain a more accurate understanding of their customers’ financial situations, all while costing lenders a fraction of the amount of a traditional assessment. Organisations are seeing results such as a 60% increase in payment amounts, combined with a 50% reduction in agent and consumer time to complete the process.
Budgie also delivers value added elements such as seamlessly checking if consumers are missing out on benefits or financial support. Recent studies show that the total amount of unclaimed benefits is £22.7 billion per year as many people are unaware of the help available. Inicio has already identified millions of pounds in missed potential income for people in debt through the rich data collected by “Budgie.”
This investment will support the company’s expansion in several key areas, including launching the UK’s first and only FCA regulated specialist consumer affordability passporting service, where consumers can share their results. The Company will also be expanding their headquarters in the West Midlands with key personnel,covering the technology and data areas.
The WMCO, launched by the West Midlands Combined Authority (WMCA) and the West Midlands Pension Fund, aims to support high-growth SMEs that contribute to the regional economy. Managed by Midven, the fund provides equity investments of up to £1 million, matched by private co-investment.
Rachel Curtis, CEO of Inicio AI, said, “This investment, coupled with our success in the OneToWin competition, marks a significant milestone in our mission to revolutionise affordability assessments. With this funding, we can expand our team, enhance our technology, and bring our innovative solutions to a wider market. It’s hugely rewarding to be able to improve the financial well-being of individuals whilst also increasing efficiency for creditors.”
Richard Parker, Mayor of the West Midlands and WMCA chair, said: “Growing our economy is a top priority for me but local companies need investment if they are to innovate and expand. That’s why our Co-Investment Fund was set up – to invest in innovation so that forward looking businesses can grow and prosper, creating valuable jobs for local people. Inicio is a great example of a West Midlands business that with the right support, has been able to get established and launch an innovative product that can make a real difference to people’s lives. By investing in homegrown talent like this we can drive further innovation and our industries of the future.”
Rupert Lyle, Investment Director at Midven and Fund Principal of WMCO, said, “We are thrilled to support Inicio AI as they address a critical challenge in the lending industry. Their innovative approach to affordability assessments has the potential to significantly improve lending and debt resolution process for both lenders and customers.”
Shiventa Sivanesan, Assistant Director – Investment Management and Stewardship at West Midlands Pension Fund, said, “We are proud to be partnering with local and innovative companies such as Inicio AI. Our investment delivers on several fronts: from supporting technological advances and helping to grow the region’s economy to generating returns that enable us to serve our members. Inicio AI epitomises the kind of enterprise the Fund was designed for with its potential to deliver both social and economic impact.”