Argentine payments fintech Pomelo secured $40 million in a Series B funding round led by Kaszek Ventures, taking its total funding to over $100 million since its inception.
Founded in Buenos Aires in 2021, the company offers payment infrastructure capabilities to fintechs and tech startups seeking to launch online accounts, credit cards, or debit cards. With over 100 clients in its portfolio, the customer base spans from fintechs like Stori or Rappi to traditional banks and non-financial corporations.
According to CEO and co-founder Gaston Irigoyen, the fresh capital provides the necessary means for Pomelo to expand its presence outside Argentina and throughout Latin America.
“The Series B will be used to fund the expansion and growth of Pomelo in Latin America, especially in Mexico and Brazil, as well as the start of operations in Chile,” he told Fintech Nexus. “We are investing heavily in our credit card management platform, which allows any fintech, bank or large company to develop a profitable card business with a regional footprint.”
The firm now enables companies in Latin America to offer these products in multiple regional countries. They claim to do so at a competitive cost and in a significantly faster time to market than traditional methods.
Previous series A round
Kaszek’s Nicolás Szekasy and Monashees’s Caio Bolognesi joined Pomelo as board members as part of the deal, Irigoyen said. Other investors included Brazilian venture capital firm Monashees, Index Ventures, Insight Partners, Endeavor Catalyst, S32 and Alter Global.
Pomelo’s most recent funding round took place in late 2021. Back then, it secured $35 million in a Series A round led by Tiger Global, alongside other investors.
“The company has demonstrated exceptional traction in a very short period of time, confirming the superiority of its technological solution and the great execution capacity of this team of entrepreneurs whom we have known for years,” said Kaszek Managing partner Szekasy in a press release.
Solid start for VC funding in Latin America
Pomelo’s latest funding deal injects renewed optimism into the fintech sector, offering a positive start to the new year. The industry faced challenges in recent years, with a notable decline in venture funding for Latin American startups. This downturn exerted significant pressure on medium-sized fintech startups, prompting some to undergo consolidation and implement substantial cost-cutting measures.
The leaders in the sector are hopeful for gradual improvement throughout 2024. To be sure, Open Finance and infrastructure are two of the verticals within fintech expected to garner the most attention.
Uruguay’s Open Banking fintech Prometeo secured $13 million in a recent funding round led by Antler Elevate. The round attracted notable investors, including Paypal Ventures and Samsung Next. Prometeo, actively involved in shaping the infrastructure for the emerging payment landscape in Latin America, reflects the region’s increasing interest in Open Banking frameworks. While specific details about the company’s valuation remain undisclosed, the funding underscores the rising importance of Open Banking in the region.
In Brazil, expense management fintech Conta Simples raised $41.5 million in a Series B round led by Base10 Partners. The company said it will apply its proceeds to develop new products like receivables and Buy Now, Pay Later features.