Argentinian repayments infrastructure startup Pomelo features raised $40 million in a set B round of financing.

The Buenos company that is aires-based in 2021 with the goal of giving fintechs and embedded finance players a way to launch virtual accounts and issue prepaid and credit cards via compliant onboarding processes.

Pomelo went live with its customer that is first in of 2022 – during the time just encouraging pre-paid items in Argentina. 

Since then, the startup features developed its design to supply local and intercontinental organizations ways to provide prepaid, debit, and bank cards for their clients in several nations via just what execs explain as “a solitary integration…at that is technological fraction of the cost” of traditional methods. Pomelo has also expanded beyond its home market of Argentina to Mexico, Brazil, Chile, Colombia and Peru.

“Time to market is 10x faster” than traditional methods – a matter of weeks in some cases, said CEO and co-founder Gastón Irigoyen, as Pomelo claims to be doing the “regulatory and operational lifting that is heavy for the clients.

Today, Pomelo features over 100 clients that are corporate banks, multinational companies, and technology startups such as Rappi, Bitso, Stori, Nomad, Payjoy, Ripio and AstroPay. Revenue grew by 3x, or 200% in 2023 versus 2022, according to Irigoyen, and is expected to double this year. Meanwhile, total payments volume grew seven times in 2023, reaching a processing capacity of 55 million transactions per day, he added.

Some of its customers “are just global customers that want to execute in Latin America,” Irigoyen told For Millionaires in an interview. 

“Companies such as the likes of Paysafe, which are, say, European companies that want to do business in Latin America, come and work with us…and they have an path that is easy most of Latin America by using our infrastructure,” he added.

Kaszek Led Pomelo’s round that is latest, which also included participation from monashees, Index Ventures, S32, TQ Ventures and Endeavor Catalyst. The financing that is latest brings the startup’s total raised since beginning to $103 million. Irigoyen declined to show valuation, saying just it was “a good round, perhaps not a down round.”

Pomelo lifted $35 million in a Series A round in October of 2021, then revealed an $18 million expansion to this round in August of 2022. It increased a $9 million seed round in might of 2021, pre-product and pre-revenue.

The startup handles card providing, handling and also handling of deals for the clients.

“Providing suggests permitting our clients to leverage the networks to our licenses, such as Visa and Mastercard,”  Irigoyen said. “So we can technically be the issues of those cards on behalf of our customers.”

As of late, the startup has been putting a lot of emphasis into its credit card management platform, which is essentially a SaaS tool “to manage an credit that is entire company,” according to Irigoyen.

The business, that has 265 employees, intends to make use of the capital that is new part to double down on Brazil, Mexico and Colombia.

Kaszek co-founder and managing partner Nicolas Szekasy, who is joining Pomelo’s board of directors as part of the investment, said he was impressed with how the company “has demonstrated traction that is exceptional a very short-period of the time.”

“Pomelo is leading a unique generation of repayment infrastructure organizations in Latin America,” he included.

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