startup success stories

ClearGrid

Meet ClearGrid, startup on a mission to transform the traditional debt collection processes and set better standards in the industry.

Fintech
UAE

Tea Hržica
Startup content strategy specialist

The debt collection industry most commonly includes agencies and firms that use various methods to collect debts, ranging from phone calls and letters to legal actions. Although the industry is regulated to protect consumers from abusive practices and ensure fair treatment, there is room for improvement in treating people with more sensitivity – a quality in which ClearGrid excels.

Startup: revolutionizing debt collection with empathy

ClearGrid is a debt resolution platform that aims to transform the traditional debt collection industry. The concept emerged from the personal experiences of its founders, who have experienced the challenges of debt and traditional debt collection practices firsthand. Recognizing the unproductive and often harsh and unethical methods employed by some debt collection firms, they decided to change the process by fostering empathy, maintaining ethical standards, and ensuring compliance.

We decided to revolutionize the way debt is collected and it starts with the concept that borrowers are not criminals. They are people who have faced hardships and intend to pay back. We believe that solving this with empathy yields better results.

explains Mohammad K., one of the co-founders

By focusing on helping borrowers find manageable solutions, ClearGrid seeks to benefit both lenders and borrowers and in doing so they became more than just a debt collection platform, but a movement towards a more humane and ethical approach to financial hardships.

Origin: from experience to business

The idea for ClearGrid emerged from the founders’ personal and professional experiences with debt collection. Mohammad K., Mohammad Z. and Khalid W., all seasoned entrepreneurs with a history of successful startups, sought to create a solution that addressed the shortcomings they witnessed in the debt collection industry. The founders’ previous entrepreneurial ventures, including successful exits to companies like Careem and Uber, equipped them with the experience and drive to launch ClearGrid despite leaving cushy jobs and stable incomes.

The founders quickly moved from concept to execution, raising $3.5 million in pre-seed funding and starting operations in the third quarter of 2023. They are now a small team of 15 dedicated employees and no traditional debt collectors.

Solution: merging of tech and empathy

ClearGrid offers a suite of solutions designed to make debt repayment easier and more transparent for borrowers while being efficient for lenders. One of the standout features is the self-service payment plan, which allows borrowers to create and amend their repayment schedules that suit their financial situation without needing to interact with a debt collector.

This user-centric approach has proven effective, with ClearGrid touching tens of thousands of lives and partnering with top financial institutions in the UAE, proving that people are willing to pay their debts if given the right options.

By using tools like AI and platforms such as Infobip, they ensure a personalized communication and high engagement rate with borrowers, refining their methods through AB testing and feedback.

As Mohammad K. puts it:

We provide borrowers with the right intelligence and information to make better decisions about their portfolios.

Tribe: a friend in need

ClearGrid’s team and culture are central to its success. Instead of employing traditional debt collectors, they focus on building tools and providing borrowers with the right intelligence to make better decisions and their collaboration with Infobip has proved instrumental in this segment.

Communication is our bread and butter so we chose the best partner for that – Infobip. You helped us test and understand our product better, and provided reliable support when issues arose.

Using Infobip’s comprehensive stack of solutions, including Conversations, Moments and Answers, ClearGrid has enhanced its communication capabilities, ensuring efficient interactions with borrowers. The support they got from Infobip Startup Tribe, including the ability to test and explore the product stack without financial strain, helped them with understanding their limitations and building a robust solution.

We use every single feature, even when it says that it’s in beta or trial, we say yes, let’s try it!

he adds, highlighting their innovative and experimental approach.

What’s next: above & beyond

Looking ahead, ClearGrid aims to reshape the debt collection industry, setting new standards for compliance and ethical practices. The founders envision playing a pivotal role in the financial landscape of the UAE and Saudi Arabia, aligning with the region’s vision of advanced and ethical banking practices.The ultimate goal is to create a model that not only excels locally but also has the potential to be exported globally.

In their journey, their mantra remains a source of motivation: “Every day in every way, things are getting better and better.” This positive outlook, combined with a focus on their strengths and acknowledgment of their weaknesses, propels them forward as they continue to innovate and make a difference in the world of debt collection. And we couldn’t be more proud to support them.🤘