Avtal Raises $24 Million to Build Digital Infrastructure for the Future of Debt Collection

AUSTIN, Texas--(BUSINESS WIRE)--Avtal, a digital engagement platform that helps collection agencies increase revenue while delivering a better consumer experience, today announced it has raised $24 million in Series A and Seed funding led by S3 Ventures, with participation from NJP Ventures.

The investment will enable Avtal to expand its engineering team and accelerate development of its platform, which helps collection agencies engage consumers through digital channels while maintaining strict compliance with consumer protection regulations.

While a majority of consumers prefer self-serve options when resolving financial matters, many collection agencies struggle to offer digital solutions due to fragmented regulatory requirements and the technological complexity of implementing compliant communication workflows.

“Regulation F established a clear framework for how collection agencies can communicate with consumers through digital channels like email and text,” said John McNamara, Chief Growth Officer at Avtal and former Principal Assistant Director at the CFPB, who helped write Regulation F. “The challenge for agencies has been operationalizing those rules in a compliant and scalable way. Avtal makes that possible while maintaining the highest regulatory standards.”

The Austin-based company provides collection agencies with a fully white-labeled platform for text, email, and digital payment portals, enabling agencies to reach consumers and resolve accounts in a faster, more transparent way. The company’s technology allows agencies to supplement call-center-heavy workflows with compliant, automated digital outreach that improves overall recovery rates while giving Americans a clearer path to resolution, as household debt in the US reached a record $18.4 trillion in Q2 2025 (USA Today).

“Consumers increasingly expect to resolve financial matters on their own terms,” said Khaled Bitar, CEO of Avtal. “Avtal helps agencies meet that expectation while staying compliant and improving recovery performance. With S3 Ventures’ and NJP Ventures’ partnership, we’re excited to scale our platform and continue to deliver a best-in-class consumer experience.”

“The best collection agencies succeed because of their operational expertise – how they manage portfolios, compliance, and consumer interactions at scale,” said Joe Gelbard, Founder and President of Avtal. “Avtal gives those agencies the tools to extend that excellence into digital channels.”

“Debt collection is one of the largest and most operationally complex sectors in financial services,” said Charlie Plauche, General Partner at S3 Ventures which manages over $1 billion in assets under management. “That environment has made adopting modern technology far more challenging than in most industries. Avtal solves that with a purpose-built platform for the collections ecosystem.”

“Consumers want to resolve their debts – they just need a better, more transparent way to do it. What excites me is that fixing the consumer experience and improving agency performance aren't competing goals; they're the same goal. This investment lets us prove that at scale,” said Peter Lukens, Managing Partner at NJP Ventures.

Since launching, Avtal has gained rapid traction among U.S.-based collection agencies seeking to modernize how they engage with consumers. The company’s digital-first approach allows agencies to scale outreach, reduce operational costs, and deliver a consumer-friendly experience all while helping agencies increase recovery rates by up to 75%.

About Avtal

Avtal is a digital engagement platform purpose-built for the debt collection industry. By modernizing the way agencies communicate and interact with consumers, Avtal improves recovery rates and delivers a more positive consumer experience through its fully compliant, white-labeled digital platform. Founded in Austin, Texas, Avtal partners with collection agencies across the United States to provide the infrastructure powering the future of digital collections across text, email, and digital payments. Learn more at www.avtal.com.

About S3 Ventures

Founded in 2005, S3 Ventures is the largest and longest-serving venture capital firm born in Texas and investing nationwide. Backed by a philanthropic family with a multi-billion-dollar foundation, we empower visionary founders with the patient capital and true resources required to grow extraordinary, high-impact companies in Business Software and Healthcare Technology. With over $1B in assets under management, we lead Seed, Series A, and Series B rounds—with initial investments ranging from $500K to $15M and the capacity to invest $25M over the life of a company. Learn more at www.s3vc.com.

About NJP Ventures

Founded by Nawaf Bitar and Peter Lukens, NJP Ventures is an early-stage venture firm built on a network of operators, engineers, and product leaders with deep insight into where technology is heading. The firm backs founders tackling meaningful problems in large, data-rich markets, and incubates companies from the ground up when its network creates a distinct advantage.