Led by VC Kaszek and with participation from Monashees, Index Ventures, Insight Partners, Endeavor Catalyst, S32, TQ Ventures, and Alter Global, the round brought Pomelo’s total funding to USD 103 million since its founding in 2021. The newly acquired funds support the company’s commitment to scaling and solidifying its payment technology in Latin America, more specifically in Brazil, Mexico, and Colombia. Furthermore, Pomelo plans to leverage the capital injection to continue investing in technology that improves card payments across the region.
Pomelo’s mission is to provide fintechs and Embedded Finance participants with a method to launch virtual accounts and issue prepaid and credit cards through compliant onboarding processes. Since the launch of its operations in Argentina, Brazil, Chile, Colombia, Mexico, and Peru in 2021, the company supported banks, national companies, and technology unicorn startups, including Rappi, Bitso, Stori, Nomad, Payjoy, AstroPay, Lulobank, and Finsus, to launch their card business efficiently via a single technological integration. Additionally, companies operating in Europe partner with Pomelo to enter Latin America by leveraging the company’s infrastructure. According to company data, the total payment volume increased seven times in 2023, reaching a processing capacity of 55 million transactions per day.
The company oversees card issuing, processing, and management of transactions for its customers, with it enabling them to leverage its licences with the networks, including Visa and Mastercard, and be the issuer of those cards on behalf of the user. Recently, Pomelo started focusing on its credit card management platform, a Software-as-a-Service (SaaS) solution that manages credit card businesses. Considering its growth, the company plans to use the funding to double the size of its business over the next period. According to Kaszek’s officials, Pomelo demonstrated increased traction in a reduced amount of time, confirming the capabilities of its technological solution and the execution capacity of its team of entrepreneurs.
In addition to the recently acquired capital, Pomelo also raised
USD 35 million in a Series A round in October 2021, as well as a USD 18 million extension to that round in August 2022. Also, the company raised a
USD 9 million seed round in May 2021, pre-product and pre-revenue.
