Pomelo Boost’s Credit-Building Remittance Services

Pomelo, the first consumer fintech platform that combines international money movement with consumer credit, has announced a major fundraising milestone.

Pomelo's recent $35M Series A and $75M warehouse expansion mark significant milestones in supporting international money movement and financial growth in underserved markets. | Photos: Pomelo, Inc.

The company has raised $35 million in Series A venture capital and secured an additional $75 million expansion of its warehouse facility from notable investors, including Vy Capital, Founders Fund, and A* Capital.

This brings Pomelo's total funds raised to date to $55 million in equity capital and $125 million for its warehouse facility.

Pomelo's recent funding success comes after being recognized in Notable Capital's Innovation 50 List for 2024, a distinction that identifies the 50 most promising fintech companies according to industry investors.

The accolade is a testament to Pomelo's innovative approach to the $650 billion global remittance industry, empowering customers to build credit with their remittance funds and obligations for the first time.

A New Approach to Remittance Transfers

Pomelo launched in 2022 with the Philippines as its first corridor, offering customers a unique way to send funds across borders while simultaneously building credit history.

Keith Rabois, an early investor and Pomelo board member, highlighted the company's novel approach to remittance transfer, emphasizing that it not only facilitates cross-border money movement but also serves as a pathway to establishing better financial futures for customers and their families.

"Pomelo stands out through a fundamentally different approach to remittance transfer by using credit as its foundation," said Rabois.

"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."

Expanding Payment Options with GCash Integration

The company's product experience has been further enhanced by the recent addition of new payment options. Most notably, Pomelo launched the ability to send funds to GCash, the most popular e-wallet in the Philippines, which is used by 67% of Filipinos, according to STL Partners.

By enabling customers to send money directly to GCash through the Pomelo app, the company makes it easier for recipients in the Philippines to access remitted funds in a form widely accepted by Filipino consumers and businesses.

This integration also allows US-based users the unique opportunity to pay later while building their credit history.

Impact on Customers and Their Families

Pomelo's approach to remittance has positively impacted the lives of its customers and their families. For instance, many emerging markets lack robust healthcare systems, making proof of payment critical for medical treatments.

Danette Flores, a nurse who sends money to two family members in the Philippines through Pomelo, shared her story of how Pomelo made a difference during a medical emergency.

"Pomelo has been a lifeline for me and my family. The worst call to get is when it's 3 AM in California," said Flores.

"My mom had suffered a heart attack, and she needed to be transferred to the ICU, but the hospital required proof of payment for that. My brother used his Pomelo Card to get her admitted."

Eric Velasquez Frenkiel, founder and CEO of Pomelo, remarked that stories like Danette's underscore the human impact behind every transfer.

"Our mission is to connect families in profoundly important ways, and this latest funding round will allow us to continue to innovate and help more customers and their loved ones around the world," he said.

Founded in 2020 and headquartered in San Francisco, CA, Pomelo is the first financial technology platform to combine international money movement and consumer credit, offering a remittance product that allows customers to send funds immediately with either a secured or unsecured credit line.