Argentina‘s new fintech challenger Pomelo announced on Thursday that it has raised a $35 million Series A round led by Tiger Global, with the participation of monashees, Index Ventures, Insight, QED, SciFi, Greyhound, and Box Group, as well as the founders of Affirm, Checkout, N26, Plaid, and Ramp, among other individuals.
The fundraising comes only three months after the startup‘s $1 million Seed round extension led by Silicon Valley VC firm Sequoia – Pomelo was the fund’s first deal in Latin America since when the company’s billionaire managing partner Doug Leone announced the firm would now focus on LatAm.
“LatAm’s tech scene is booming, and some emerging startups are transforming entire industries. Fintech is a clear example, and we’ve seen some amazing consumer products disrupt consumer banking, lending, and insurance in recent years,” said John Curtius, partner at Tiger Global Management, in a press statement.
In talks with LABS, Gastón Irigoyen, co-founder and CEO of Pomelo, said that there was no need for cash flow at this time and that Tiger’s fundraising came naturally, as part of the “investor’s interest” for the startup. “In fact, this round was almost four times oversubscribed,” said Irigoyen.
The exec explains that the amount will be used to increase the size of the startup‘s team, going from 100 to 250 people by the end of 2022, allowing Pomelo to accelerate its product development. Proceeds will also go to the launching of operations in Brazil, Mexico, and later on Colombia.
It seems that venture capitalists are keen on fintech infrastructure in LatAm. On Wednesday, Brazil‘s fintech Hash announced a $40 million round from QED Investors and Kaszek. Hash focuses on providing POS and infrastructure of payments for companies from several sectors.
Pomelo allows fintechs and tech companies to embed financial services to their business through a proprietary API platform, which, in turn, enables companies to build onboarding processes, launch virtual accounts that are connected to local financial systems, and issue debit and credit cards throughout Latin America.
“Our goal at Pomelo is to make LatAm look like Europe, meaning that we help our partners unlock multiple markets in a short period [of time], allowing them to grow their businesses instead of worrying about regulation, dozens of contracts, and backend integrations. Pomelo allows any company to launch an entire fintech with a suite of APIs, from onboarding a new user to delivering a credit card to her front door”, adds Irigoyen.