Remittance

Pomelo Secures Major Series A Funding to Grow Credit-Based Remittance Services

Consumer credit-based cross border payments provider, Pomelo has recently announced a significant increase in funding, securing a Series A investment of US$35 million and expanding its warehouse facility by US$75 million.

The round was led by Vy Capital, with contributions from Founders Fund and A* Capital, bringing the total raised to US$55 million in equity capital, along with US$125 million in total for its warehouse facility.

Established in 2022, Pomelo was recently recognised on GGV Capital’s Innovation 50 List for 2024, highlighting its role as an integral Philippines player in the US$650 billion global remittance market. The company facilitates international money transfers through consumer credit, allowing users to build credit with their remittance funds.

Keith Rabois

Keith Rabois, an early investor and board member, remarked on the company’s approach:

“Pomelo stands out through a fundamentally different approach to remittance transfer by using credit as its foundation. The product unlocks value beyond facilitating cross border money movement; it’s ultimately a pathway to establishing better financial futures for customers and their families.”

Pomelo claims to be the first consumer fintech to enable international money movement with consumer credit.

The fintech platform has broadened its service offerings since its inception, including a payout integration with GCash, the leading e-wallet in the Philippines that is used by two thirds (67%) of Filipinos.

This integration with GCash feature enables immediate fund access for recipients and offers US-based users a method to establish a positive credit history, while leveraging Pomelo’s ‘pay later’ option.

The introduction of Pomelo’s initiatives are having an impact on the way financial services interface with remittance and credit building. According to Pomelo’s press statement, not only is it streamlining transactions but is also providing solutions to larger socio-economic issues, such as healthcare payments in emerging markets, by offering dependable proof of payment.

Featured image credit: Edited from Freepik