Pomelo, a fintech startup pioneering a unique blend of international money transfer and credit services, has secured $35 million in a Series A funding round led by Dubai-based venture firm Vy Capital, with participation from Founders Fund and A* Capital, among others. This investment, along with an additional $75 million expansion of its warehouse facility, underscores Pomelo’s momentum in reshaping cross-border remittances.
The Series A round marks a preemptive milestone for Pomelo, showcasing strong support from both new and existing investors. Notably, Keith Rabois and Kevin Hartz from Founders Fund and A* Capital respectively have shown significant confidence in Pomelo’s vision. With a focus on providing a remittance product on credit card rails, Pomelo’s innovative approach has garnered attention for its potential to revolutionize cross-border money movement.
Operating primarily in the Philippines since 2022, Pomelo offers users the ability to send money while simultaneously building credit. Leveraging an agreement with Mastercard, Pomelo’s “Send Now, Pay Later” (SNPL) model promises faster transactions with no transfer fees compared to traditional methods. The platform empowers users to set up accounts with customizable credit cards, providing instant access to funds and fraud protection.
The new capital infusion will drive Pomelo’s expansion efforts, with Mexico as the next target market. With Mexico representing a significant corridor for cross-border transactions, Pomelo aims to capitalize on this opportunity to further grow its user base and solidify its position in the fintech landscape.
Cross-border fintech continues to gain traction, driven by technological advancements and changing consumer preferences. Pomelo’s success underscores the increasing demand for innovative solutions in the remittance space, positioning the company for continued growth and market leadership.
