- Miami, Florida-based neobank Novo raised $35 million in funding, taking its Collection B funding spherical to $125 million.
- The Collection B raises Novo’s whole fairness funding to greater than $170 million.
- The most recent capital infusion comes from GGV Capital, which manages greater than $9 billion in investments throughout North America, China, Southeast Asia, India, Latin America, and Israel.
An extra $35 million funding brings the full raised by Miami, Florida-based fintech Novo to $125 million. The most recent infusion comes courtesy of strategic investor GGV Capital, and brings Novo’s whole fairness funding to greater than $170 million.
In a press release, Novo CEO and co-founder Michael Rangel highlighted the brand new performance of the Novo Platform and the “tens of thousand” of small enterprise prospects the corporate has onboarded. Rangel additionally praised GGV as “instrumental” in serving to different know-how corporations (“from Airbnb to Sq.”) scale their companies, and stated he believed the assist of the agency would assist Novo attain “thousands and thousands extra small companies within the coming years.” Observe that GGV Capital Principal Robin Li will be a part of Novo’s board of administrators as an observer.
With greater than 175,000 small enterprise prospects, Novo provides a free enterprise checking account with free ACHs and incoming wires; a Novo Digital card; no hidden charges; and an utility course of that may be accomplished in lower than 10 minutes. Novo additionally offers on-line small enterprise banking companies together with the flexibility to ship and observe invoices; as put aside funds for taxes, payroll, and extra by way of its Novo Reserves function. Novo is partnered with Middlesex Federal Financial savings, which offers FDIC protection of Novo deposits as much as $250,000.
Moreover, as of 2021, the corporate has provided Novo Apps, a complete apps market to allow SMEs to customise their banking expertise; Novo Increase, which provides small companies identical day entry to funds acquired by Stripe; in addition to Specific ACH that permits identical day processing of ACH funds.
GGV Capital Managing Associate Hans Tung underscored Novo’s “ecosystem method” to offering banking companies to small companies, freelancers, and gig economic system staff. “They’ve constructed a strong, intuitive platform that enables SMBs to attach all of their enterprise and monetary functions to their Novo account,” Tung stated.
Novo’s newest funding comes as the corporate publicizes surpassing $12 billion in lifetime small enterprise transactions. Based in 2016, Novo was named one of many “Subsequent Billion-Greenback Startups” of 2022 by Forbes earlier this yr.
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