Investing in Kredos AI: Transforming Engagement for the Most Complex Challenges

We are excited to announce our investment in Kredos AI, the company reinventing how enterprises engage with consumers who fall behind on payments. We believe Kredos is building a category-defining platform at the intersection of behavioral science and artificial intelligence, and we are proud to back the team as they scale.

Every large enterprise with a consumer subscriber or lending base faces the same persistent challenge: a meaningful share of revenue is tied up in delinquent accounts at any given moment, and the annual cost of bad debt can run into the hundreds of millions of dollars. The tools most companies rely on to manage these accounts are static and rules-based. They send the same message to every delinquent customer on the same schedule through the same channel, regardless of who that customer is or why they have fallen behind. This one-size-fits-all approach leaves money on the table and too often damages the customer relationship in the process.

The timing for a better solution has rarely been more pressing with the Michigan Consumer Sentiment Index being close to all time lows. As more households come under pressure, the inadequacy of legacy collections processes becomes more visible and more expensive. And as we all know, stock market performance does not equate to consumer economic strength.

A Multi-Armed Bandit Doing Good

Kredos replaces static, internal collection processes with a dynamic and AI-driven "multi-armed bandit" model that personalizes communication across demographics and credit bands to engage with consumers in a more meaningful way and in a manner that retains the account for Kredos' enterprise customers. The platform operates in the critical window between a missed payment and the point at which an account heads to collections or write-off. During that window, Kredos determines the right message, the right timing, and the right channel for each individual account, rather than treating every customer the same way.

At the core of the platform is a proprietary model trained on a large volume of real payment behavior. Instead of relying on traditional fixed testing methods, Kredos uses a continuously learning approach that experiments with different messaging strategies and shifts toward whatever is working best in real time. A multi-agent architecture coordinates engagement across channels while maintaining a personalized view of each customer at scale. Just as importantly, the platform is purpose-built for regulated industries, with compliance considerations designed into the system from the ground up. Getting this right is genuinely difficult, and doing so creates meaningful switching costs once a customer is integrated.

The result is a solution that helps consumers resolve delinquent accounts in a more constructive, less adversarial way, while delivering clear, measurable financial benefit to the enterprise. We see this as a rare case where the interests of the business and the consumer are well aligned.

Why We Invested

Our conviction rests on a few core beliefs.

First, we believe enterprises will continue to adopt and expand their use of Kredos because the platform delivers value that flows directly to the bottom line. Reduced bad debt, improved customer lifetime value, and faster collection are outcomes that any finance leader cares deeply about. Once a customer experiences these results, the natural path is to expand deployment across a larger share of their accounts. As more consumers experience the solution, it feeds back the algorithm and creating a powerful data network effect.

Second, we believe the problem Kredos solves is not specific to any one industry. Managing delinquent consumer accounts is a challenge in every sector that involves subscriptions or lending, from telecommunications and cable to financial services, auto lending, and beyond. The underlying engine is not vertical-specific, which gives the company a long runway to expand into new markets where the cost of write-offs is high. Over the longer term, we see potential for the same behavioral engine to extend beyond delinquency management into broader customer communication and engagement.

Third, and perhaps most importantly, we believe in the team. The founders bring deep, firsthand experience from the very industry they are now serving, having spent years inside a large enterprise wrestling with exactly the problems Kredos addresses. They understand these customers because they used to be these customers. That founder-market fit is complemented by a seasoned technology and commercial leadership team with a track record of building, scaling, and delivering.

The Opportunity Ahead

Kredos' beachhead market in telcos is substantial on its own but it grows dramatically as the platform expands across additional verticals and use cases. We are particularly excited about the breadth of where this technology can go and the role Kredos can play in helping enterprises treat consumers more thoughtfully during difficult financial moments.

We are thrilled to partner with the Kredos team at this stage of their journey and look forward to supporting them as they build the leading platform for intelligent consumer engagement.

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