Pomelo is reporting that it has raised a new funding round of $40 million, with the aim of consolidating their leadership in payment technology in Latin America.
Pomelo says its investment round was led by Kaszek, which is reportedly one of the largest venture capital funds in Latin America, and also “included the participation of important international investors, such as Monashees, Index Ventures, Insight Partners, Endeavor Catalyst, S32, TQ Ventures and Alter Global.”
Since their founding in 2021, the Pomelo payment technology stack is said to be focused on “modernizing the card business in Latin America.”
The tech reportedly “allows local and international companies to offer prepaid, debit and credit cards to their customers in multiple countries, with a single technological integration and by a fraction of the cost.”
Throughout this journey Pomelo say they have “raised US$ 103 million.”
With the focus on their growth plan, the capital received will allow Pomelo to “continue investing in disruptive technology that transforms card payments throughout Latin America and double the size of their business in 2024.”
Pomelo’s management said they are pleased “to start the year with this injection of capital and to have the support of Kaszek and several of the most prestigious investment funds globally.”
This achievement confirms that they “continue to move in the right direction and strengthen our leadership in the region,” according to Gastón Irigoyen, Co-Founder & CEO of Pomelo.
With a presence in the most important markets in the region (Argentina, Brazil, Chile, Colombia, Mexico and Peru), they aim to “help hundreds of banks, multinational companies and technology unicorns such as Rappi, Bitso, Stori, Nomad, Payjoy, AstroPay, Lulobank e Finsus to launch its card businesses in a few weeks.”
They will now be “able to multiply their payment volume by seven, reaching a processing capacity of 55 million daily transactions.”
This allowed them to strengthen their strategic alliances “with Mastercard and Visa. Additionally, we were authorized as a Payments Institution by the Central Bank of Brazil, awarded at the World Economic Forum in Davos, and received the Visa Financial Innovation Award and the Mastercard Excellence Award, among other achievements.”
Pomelo now claims that it is leading a new generation of payment infrastructure companies in Latin America and at Kaszek they are looking forward “to actively support them in this stage of expansion.”
The company has demonstrated traction in a short period of time, “confirming the superiority of its technological solution and the great execution capacity of this team of entrepreneurs whom we have known for years.”
Nicolas Szekasy, Co-Founder and Managing Partner of Kaszek, “raised a new $1 billion fund in 2023 to invest in Latin America and has been working with iconic technology companies in the region for more than a decade. Along with Caio Bolognesi of Monashees, Szekasy will join the Pomelo board.”
This investment received confirms “the fundamental importance of our role in the payments industry, allowing us to advance in the development of unprecedented technological products in the region.”