Pomelo Secures US$40 Million to Scale Operations in Latin America

Latin American fintech infrastructure provider and financial services company Pomelo has secured US$40 million in Series B funding to strengthen its presence in Mexico and expand operations to Chile. 

The funding round was led by Kaszek, the largest venture capital fund in Latin America, and saw participation from significant international investors such as Monashees, Index Ventures, Insight Partners, Endeavor Catalyst, S32, TQ Ventures, and Alter Global. Since its inception three years ago, Pomelo has raised a total of US$103 million in four rounds. 

Of the US$40 million secured in this funding round, 50% will be invested in consolidating Pomelo’s client base in Mexico. The remaining funds will be allocated to establishing the company in Chile and solidifying its presence in the other four markets it serves.

"We are very pleased to start 2024 with this capital injection and to have the backing of Kaszek and several of the most prestigious global investment funds. This achievement ratifies that we continue moving in the right direction and advancing our leadership in the region," said Gaston Irigoyen, Co-Founder & CEO, Pomelo in a press release.

Pomelo witnessed a significant surge in payment volume in 2023, experiencing a sevenfold increase and achieving a processing capacity of 55 million transactions daily. The company achieved an uptime of 99.9%, “unheard in the industry,” highlighted Guerrero. During this period, Pomelo earned recognition at the World Economic Forum in Davos, the Visa Financial Innovation Award, and the Mastercard Excellence Award. Additionally, Endeavor acknowledges Pomelo as one of the most promising companies for the impact it is generating in Mexico. 

Founded in 2021, Pomelo aims to help banks, fintechs, unicorns, and other tech companies streamline their card issuing process. The company can provide Mastercard and Visa operating licenses to new fintechs within an 11-day timeframe. “Our record for when a company decides to work with us to when they process its first payment is 11 days,” shared Reymundo Guerrero, Country Manager Mexico, Pomelo, during a press conference.

“We will continue to develop technology and products to help our clients integrate their services seamlessly into the digital space. Despite Mexico being a few years behind in adopting these technologies, we are confident about the potential for growth and impact,” said Guerrero. 

In 2024, Pomelo aims to double its growth in Latin America and Mexico while expanding its client base by 75%. The company aims to achieve full profitability by 2025.