Coventry-based FinTech innovator Inicio AI has secured £2.6 million in seed funding to scale its AI-driven affordability assessment platform, in a move that could reshape how organisations evaluate financial wellbeing.
The funding follows the company’s recent victory at Birmingham Tech Week’s prestigious OneToWin pitch competition.
The investment round includes £500,000 from the West Midlands Co-Investment Fund (WMCO)—managed by Midven, part of Future Planet Capital—as well as funding from Rigby Group PLC (£500,000), Haatch Ventures (£300,000), and backing from Morgan Stanley, Angel Academe, Mint Ventures, and several angel investors.
At the heart of Inicio AI’s solution is “Budgie”, a conversational AI virtual agent that guides consumers through an online affordability assessment. The process is designed to be both intuitive and accessible, helping organisations gain a clearer, data-rich understanding of their customers’ financial situations—particularly for those in vulnerable or financially challenging circumstances.
By replacing manual affordability checks with AI-powered dialogue, Budgie has demonstrated a 60% increase in payment amounts and a 50% reduction in both consumer and agent time, delivering measurable benefits for both lenders and customers.
Beyond affordability insights, Budgie can also identify if users are missing out on vital financial support or unclaimed benefits. According to recent figures, £22.7 billion in benefits go unclaimed annually in the UK. Inicio AI’s tool has already uncovered millions of pounds in untapped support for indebted individuals.
The new funding will support several key growth initiatives, including the launch of the UK’s first FCA-regulated consumer affordability passporting service, enabling individuals to securely share their affordability data across service providers. The company also plans to expand its West Midlands headquarters, investing in new hires across technology and data disciplines.
Rachel Curtis, CEO of Inicio AI, commented: “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 WMCO is backed by the West Midlands Combined Authority (WMCA) and the West Midlands Pension Fund, and aims to catalyse high-growth potential SMEs that can drive regional economic impact.
Richard Parker, Mayor of the West Midlands and Chair of the WMCA, praised the move: “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 to people’s lives. By investing in homegrown talent like this, we can drive innovation and our industries of the future.”
Rupert Lyle, Investment Director at Midven and Fund Principal of WMCO, added: “We are thrilled to support Inicio AI as they address a critical challenge in the lending industry. Their innovative approach has the potential to significantly improve the debt resolution process for both lenders and customers.”
Shiventa Sivanesan, Assistant Director – Investment Management and Stewardship at West Midlands Pension Fund, noted: “Inicio AI epitomises the kind of enterprise the Fund was designed for—with its potential to deliver both social and economic impact.”
With its fresh injection of capital, Inicio AI is now poised to expand its impact across the financial services sector, helping organisations create fairer, faster, and more effective affordability journeys for millions of UK customers.
