Image credits: Left to right: Left to right: Pomelo co-founders Hernan Corral, Gaston Irigoyen and Juan Fantoni / Pomelo
The start of Argentina’s payment infrastructure Pomelo raised $40 million in Series B funding.
The Buenos Aires-based company launched in 2021 with the goal of giving fintechs and embedded finance players a way to launch virtual accounts and issue prepaid and credit cards through compliant onboarding processes.
Pomelo It went live with its first customer in January 2022 – at the time it only supported prepaid products in Argentina.
Since then, the startup has developed its own model to provide local and international companies are a way to offer prepaid, debit and credit cards to their customers in many countries from traditional methods by what they describe as a “unified technological integration…at a fraction of the cost”. Pomelo has also expanded beyond the domestic market of Argentina to Mexico, Brazil, Chile, Colombia and Peru.
“Time to market is 10 times faster than traditional methods” – weeks in some cases, said the CEO and co-founder. Gaston IrigoyenPomelo claims to do the “regulatory and operational heavy lifting” for its clients.
Today, Pomelo has more than 100 corporate clients, including banks, multinationals, and tech startups like Rappi, Bitso, Stori, Nomad, Payjoy, Ripio, and AstroPay. According to Irigoyen, revenue tripled or 200% in 2023 compared to 2022 and is expected to double this year. In the meantime, In 2023, the volume of total payments increased seven times, reach the processing capacity of 55 million transactions per day, he added.
Some of its clients are “just global clients looking to operate in Latin America.” Irigoyen said in an interview with TechCrunch.
“Companies like Paysafe, for example European companies that want to do business in Latin America, come and work with us… and they have an easy way to all of Latin America by using our infrastructure,” he said. .
Kaszek led the final round, which also included Pomelo monashees, Index Ventures, S32, TQ Ventures and Endeavor Catalyst. The latest funding brings the startup’s total since its inception to $103 million. Irigoyen declined to disclose the valuation, saying it was “a positive round, not a down round.”
Pomelo raised $35 million in one year Series A It announced an $18 million extension of that round in October 2021 and then in August 2022. $9 million seed round Pre-harvest and pre-revenue in May 2021.
The startup deals with card issuing, processing and also transaction management for its customers.
“Issuing means allowing our customers to use our licenses with networks like Visa and Mastercard” Irigoyen said. “So we can technically have issues with these cards on behalf of our customers.”
According to Irigoye, the startup has recently focused heavily on its credit card management platform, which is essentially a SaaS tool “to manage the entire credit card business.”
The 265-employee company plans to use the new capital in part to double down in Brazil, Mexico and Colombia.
Kaszek is a co-founder and managing partner Nicholas Szekasy, who joined Pomelo’s board of directors as part of the investment, said he was impressed by the company’s “excellent traction in such a short period of time.”
“Pomelo is leading a new generation of payment infrastructure companies in Latin America,” he said.
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