The Latin America fintech, namely Pomelo, who raised their seed funding round about five months ago with funds amounting to $9 million, recently announced to have received $35 million in a Series A funding round led by Tiger Global Management.
The company was founded this year itself, in the previous quarter, with the target of building a platform that works on fintech-as-a-service, for the Latin American market. The infrastructure they provide allows embedded finance players and fintech to easily launch accounts virtually, along with the permission to issue credit and prepaid cards via processes based on complaints on board.
It is quite impressive of the company to have managed to attract so many high-profile brands within such a small period of time, being so young in the market. Besides Tiger Global, there were other venture capital firms participating as investors in the Series A funding, which includes Clocktower, Gilgamesh Ventures, Greyhound, BoxGroup, QED Investors, SciFi, Monashees, Index Ventures and Insight Partners. Funding was also generated from individual investors, including Eric Glyman, Karim Atiyeh, Itai Damti, William Hockey, Max Tayenthal, Angela Strange, Jackie Reses, Martin Varsavski, Biz Stone and others who make the notable names in the list.
Pomelo has been in the market for about seven months and despite being in its early stages, the company has achieved gaining four customers, made of one embedded finance player and three fintech. The first remote fintech was launched in Argentina and has started offices and operations in Brazil and Mexico since then, with plans hoping for an expansion up to Chile and Colombia. They were granted a payments license and a MasterCard in Argentina.
The main goal of Pomelo is to bring solutions to problems by creating an infrastructure of financial services for the new generation, which can allow companies to create a fintech business and have cards launched faster in Latin America. This place is said to be home to a financial services infrastructure that is obsolete in nature, with high rates of fragmentation.
According to their claims, Pomelo has a platform driven by API which provides the companies with a way to create complaint processes of onboarding, virtually launch accounts that are connected to the local systems of finance, and issue credit and debit cards throughout the Latin American market.
At present, Pomelo has employed a team of 100 members, including people having prior experience from working in places like Amazon Payments, Nubank, MasterCard, D-Local, N-26 and Lime. They are planning to hire another round of 150 employees, within 2022, to improve their services by bringing in more diversity and manpower on board. The company plans on using the investments received on accelerating its product roadmap and towards efforts on business development. At Pomelo, their motto is to help their partners in unlocking multiple markets within a short time span, allowing them to concentrate on business growth.