Inicio’s technology supports efficient financial management processes for clients in a variety of sectors including utilities, banks, debt management firms, and charities.

The firm’s conversational AI tool assists consumers in determining their financial affordability, thereby enabling creditors to formulate a plan of action. The online nature of this interaction aims to alleviate consumer pressure and shame that may occur in human interactions.

Among Inicio’s current clients are mental health charity Life Link and UK debt recovery agency Pastdue Credit Solutions. The fresh funds will facilitate expansion of the Inicio team, aiding the onboarding of additional clients and fuelling further technology development to realise its market potential.

The startup was established in 2020 and has a robust Scottish presence. It is a recent graduate of the University of Edinburgh AI Accelerator, and was named winner of the 2023 programme.

Inicio co-founder Rachel Curtis took over as its CEO in August 2021 building on a 30-year career in financial services where she worked with major institutions including Santander and Halifax. She currently serves as a non-executive director for the Loughborough Building Society.

Other key people at the company include chairman James McGlynn, a former group CIO of Virgin Money, Clydesdale, and the Yorkshire Banking Group; and financial services and credit management sector veteran Derek Usher, who serves as a board member.

Commercial law firm Davidson Chalmers Stewart provided advice to Inicio throughout this fundraising round.

Ms Curtis said: “We’re delighted with the progress of this investment round which will take Inicio significantly forward on its growth journey.

“This additional capital will enable us to build our team so we can onboard new clients and help in the development of our innovative technology so we can further enhance its efficiency and adapt it for other sectors.

“The team at Davidson Chalmers Stewart has been extremely supportive and instrumental in guiding us through the complexities of this investment round ensuring keeping on track with critical timescales.”

Stephen Smith, a partner in Davidson Chalmers Stewart’s corporate team, said: “Inicio is a ground-breaking company which has shown how AI-led technology can benefit both businesses and consumers.

“Through this new injection of investment capital, the company is well-placed to grow its market reach here in the UK and globally.”