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On 8 December 2021, the debt collection FinTech troy announced that Transaction Capital will become a new investor and strategic partner for its international expansion. troy receives an eight-figure investment to cement its position as the customer experience leader in debt collection and drive forward its geographic expansion strategy in multiple markets. Existing investors also participated in this multi-stage financing round.
Transaction Capital is a Johannesburg-listed financial services company whose business unit “Transaction Capital Risk Services” is active in receivables management in the South African and Australian market.
The financial investment by Transaction Capital underpins the strategic importance of this partnership. By licensing troy’s debt collection platform, which has won numerous awards for its market-leading customer experience ("troy_experience"), Transaction Capital plans to unlock new market segments in South Africa and Australia. For troy's international clients, this means that the troy_experience will also be available in Australia and South Africa to optimize recovery rates and customer retention.
Furthermore, the cooperation aims to combine the tangible collection advantages of troy’s approach with the financial strength of Transaction Capital to purchase non-performing loans (NPL) at scale. This creates an attractive bundle for NPL sellers, as Transaction Capital is a prestigious financing partner, troy’s performance will allow for competitive prices, and portfolios will be managed with the best possible collection experience. In this regard, NPL sellers will not have to rely on promotional assurances from buyers regarding the collection experience. Via the "troy_seller" web portal, which will be released in early 2022, they can monitor how troy is delivering on the promise of the best possible collection experience, with drill-down possibilities to the level of individual interactions with payers. This supports the sellers’ ESG goals, which have become vital in the NPL ecosystem. The partnership has already won a major German bank with this unique package.
Philip Rürup, Founder and CEO, troy gmbh
"When we started our journey, we decided to focus on excellent customer experience and to design the platform for international scalability. This strategy is paying dividends now. Our platform approach allows us to partner with a regional debt collection leader like Transaction Capital while achieving an internationally homogeneous, optimal customer experience. This makes troy the perfect match for international brands with a rigorous focus on customer experience."
Philip Rürup
Founder and CEO of troy
"Thanks to best performance, TCRS is the market-leading debt collection provider in South Africa, and we are also among the leading service providers in Australia. The partnership with troy will enable us to tap into the 'early collection' segment in our core markets and strengthen our regional expansion into Europe and the US."
Stephan Venter
Group Executive of Transaction Capital Risk Services (TCRS)
"As a venture capital firm, we always have to evaluate very carefully what influence a strategic investor has on the development opportunities for our portfolio companies. By partnering with Transaction Capital, we have succeeded in combining the best of both worlds: to fully leverage the great opportunities of a strategic cooperation without limiting troy's 'venture path'. My thanks go to both troy's and TCRS' management, who acted not only in a pragmatic fashion but also demonstrated great vision for the business going forward."
Willi Mannheims
Managing Partner at eCAPITAL (and troy's largest investor)
Zelig acted as exclusive strategic and financial advisor to troy
