Avtal is a digital collection platform that seeks to give a lift to collection agencies in their end results and at the same time give a better experience to consumers. The platform recently secured a total of $24 million in Series A and Seed funding. S3 Ventures led the round, with NJP Ventures also joining as investor.
Avtal will use the newly raised funds to enlarge its engineering team and support the launch of new features. One of the companys goals is to continue advancing its software that allow debt collection agencies working in legal digital channels to communicate with consumers while keeping to very strict consumer protection regulations.
Since consumers like to handle their finances by themselves, it is not surprising that many collection agencies are always reluctant in adopting new digital tools for consumer engagement because of the confusing regulatory environment and the technical complexity of a communication system compliant with the law. By providing an easy-to-follow and fully compliant structure for digital interactions, Avtal is, in the first place, bridging the gap between what collection agencies want and what consumers expect.
“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.”
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Headquartered in Austin, Avtal provides a fully white-labeled platform that includes text messaging, email communications, and digital payment portals. This allows collection agencies to move beyond traditional call-center-heavy models and adopt automated, compliant digital outreach strategies. The result is faster account resolution, improved transparency, and enhanced consumer satisfaction. The need for such solutions is underscored by rising household debt in the United States, which reached $18.4 trillion in Q2 2025.
“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 its launch, Avtal has experienced strong adoption among U.S.-based collection agencies looking to modernize consumer engagement strategies. Its digital-first platform enables organizations to scale outreach, lower operational costs, and deliver a more user-friendly experience—while driving measurable improvements in recovery rates, with some agencies reporting increases of up to 75%.
