Silicon Valley-headquartered consumer fintech - Pomelo - announced a total of $115 million in venture capital and expansion fund as it strengthens its digital remittance product globally, that includes the Philippines through the country’s most popular e-wallet GCash.
In a statement, Pomelo said that the funding Series A includes $35 million in venture capital and a $75 million expansion of its warehouse facility with the participation of Vy Capital, Founders Fund and A*Capital. This brings total funds raised to date to $55 million in equity capital and $125 million for its warehouse facility, the company said in a statement.
Pomelo is the first financial technology platform that combines international money movement and consumer credit, and offers a remittance product that enables customers to send funds immediately with either a secured or unsecured credit line.
Pomelo Board Member Keith Rabois, who is also an early investor, recognized that Pomelo’s novel product experience had the potential to deliver enhanced value to an underserved market.
“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,” he added.
Pomelo launched in 2022 with the Philippines as its first corridor, and has since added new payment options that enhance the product experience for its customers. Most notably, Pomelo recently launched the ability to send funds to GCash, the most popular e-wallet in the Philippines.
In partnering with GCash, Pomelo cited a recent article by STL Partners, which stated that 67 percent of Filipinos use GCash. By allowing customers to send directly to GCash through the app, Pomelo said customers’ loved ones can easily access remitted funds in a form widely accepted by Filipino consumers and businesses, while also providing US-based users the unique option to pay later and build positive credit history.
Pomelo noted that GCash is the newest in a set of payout instruments that complement its eponymous card product that has positively impacted the lives of customers and their families. For example, given that many emerging markets do not have a robust healthcare system, being able to show proof of payment for treatment is critical.
The company cited the case of Danette Flores, a nurse who sends money to two family members in the Philippines with Pomelo. "Pomelo has been a lifeline for me and my family. The worst call to get is when it’s 3 AM in California,” Flores was quoted by Pomelo in a statement. “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,” she said.
“Stories like Danette’s show that there’s a human story behind every transfer,” said Eric Velasquez Frenkiel, founder and CEO of Pomelo. “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.