Advaith Singh Argentinian payments infrastructure startup Pomelo has secured $40 million in a Series B funding round to fuel its growth in Latin America.
Evolution of Pomelo
Founded in 2021 in Buenos Aires, Pomelo initially focused on enabling fintechs and embedded finance players to launch virtual accounts and issue prepaid and credit cards through compliant onboarding processes. After launching its first customer in January 2022, Pomelo expanded its services to support prepaid, debit, and credit card offerings in multiple countries across Latin America, including Mexico, Brazil, Chile, Colombia, and Peru.
Rapid Growth and Expansion
Pomelo’s CEO and co-founder, Gastón Irigoyen, highlights the company’s impressive growth metrics. Revenue tripled in 2023 compared to 2022, reaching a processing capacity of 55 million transactions per day. The startup has onboarded over 100 corporate clients, including banks, multinational companies, and technology startups like Rappi, Bitso, Stori, and PayJoy. Pomelo’s streamlined approach enables its clients to enter the Latin American market swiftly and cost-effectively.
Key Investors and Funding
The Series B round was led by Kaszek, with participation from monashees, Index Ventures, S32, TQ Ventures, and Endeavor Catalyst. This latest funding round brings Pomelo’s total raised capital to $103 million since its inception. The startup’s previous funding rounds include a $35 million Series A round in October 2021 and an $18 million extension in August 2022. Additionally, Pomelo raised a $9 million seed round in May 2021.
Core Services and Future Plans
Pomelo offers end-to-end solutions for card issuing, processing, and transaction management. The startup’s emphasis on credit card management platforms and software-as-a-service (SaaS) tools aims to provide comprehensive solutions for its clients’ credit card businesses. With 265 employees, Pomelo plans to use the new funding to further expand its presence in key markets such as Brazil, Mexico, and Colombia.
Investor Perspective
Nicolas Szekasy, co-founder and managing partner at Kaszek, expressed confidence in Pomelo’s growth trajectory, emphasizing its leadership in revolutionizing payment infrastructure in Latin America. Szekasy’s positive outlook underscores Pomelo’s potential to drive innovation and efficiency in the region’s financial services landscape.
