Coventry FinTech firm secures £2.6 million to grow operations and launch FCA-regulated service

Coventry-based technology company Inicio AI has raised £2.6 million in seed funding to support its work on affordability assessment tools, particularly for people in financial difficulty.

The funding will enable the company to expand its team and grow its headquarters in the West Midlands. It will also contribute to the launch of the UK’s first Financial Conduct Authority (FCA)-regulated consumer affordability passport service. This service is designed to allow users to share their financial data securely with third parties.

The funding round comes shortly after Inicio AI’s success at the OneToWin pitch competition held during Birmingham Tech Week.

Investment includes £500,000 from the West Midlands Co-Investment Fund, which is managed by Midven, and an additional £500,000 from Rigby Group PLC. Haatch Ventures has contributed £300,000, with further investment from Morgan Stanley, Angel Academe, Mint Ventures, and various angel investors.

Rachel Curtis, CEO of Inicio AI, said: “This investment, coupled with our success in the OneToWin competition, marks a significant milestone in our mission to revolutionise affordability assessments. With this funding, we can expand our team, enhance our technology, and bring our innovative solutions to a wider market. It’s hugely rewarding to be able to improve the financial well-being of individuals whilst also increasing efficiency for creditors.”

The company’s central product is a conversational AI tool named “Budgie.” It guides users through the affordability assessment process online, with the aim of increasing completion rates and improving organisations’ understanding of individual financial situations.

According to the company, Budgie can lead to a 60% increase in agreed payment amounts and reduce assessment completion times by 50%. It also helps users locate unclaimed financial support and benefits, addressing an estimated £22.7 billion in unclaimed aid annually.

To date, Budgie has identified millions of pounds in missed financial support for individuals in debt.

Richard Parker, Mayor of the West Midlands and chair of the West Midlands Combined Authority (WMCA), said: “Growing our economy is a top priority for me, but local companies need investment if they are to innovate and expand. That’s why our Co-Investment Fund was set up – to invest in innovation so that forward-looking businesses can grow and prosper, creating valuable jobs for local people. Inicio is a great example of a West Midlands business that, with the right support, has been able to get established and launch an innovative product that can make a real difference in people’s lives. By investing in homegrown talent like this, we can drive further innovation and our industries of the future.”