Westpac Banking Corp's venture capital fund has invested in the debt collection platform InDebted in a deal that shows banks, telcos and utilities will seek to collect more bad debts by deploying technology across the archaic industry.

Reinventure Group has backed the $1 million seed fundraising round by InDebted, its 15th investment since the fund was established in early 2014. InDebted currently has three staff and plans to increase this to a dozen over the next 12 months. The Sydney-based start-up is already making revenue from its more than 1000 customers, mostly small businesses and some fintech lenders including SpotCap, whose managing director in Australia, Lachlan Heussler, is also an angel investor in the round.