[Funding alert] SME Banking Platform Novo Raises $ 90 Million at $ 700 Million Valuation Led by Stripes

[Funding alert] SME Banking Platform Novo Raises $ 90 Million at $ 700 Million Valuation Led by Stripes

The small business banking platform Novo Raised $ 90 Million in Series B to Fund $ 700 Million Valuation directed by Inasmuch asGroovesInasmuch as. The cycle also saw continued participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup.

This latest round brings Novo’s total funding to over $ 135 million. With the additional $ 90 million, Novo plans to develop modern lending capabilities, integrations and proprietary products. With new advanced features that involve a series of improvements, the platform aims to enable small businesses to send and receive money faster.

Saagar Kulkarni, partner at Stripes who will join Novo’s board of directors, said:

Despite being the heart of the U.S. economy, more than 30 million small businesses in the United States have historically struggled to access basic financial services because they are consistently overlooked by the big banks. What sets Novo apart is a fundamentally different approach to helping small businesses succeed. Instead of going for a gradual change, Novo has built its banking platform from the ground up so that it can not only deliver a great digital banking experience, but also bring Novo financial products to a customer base that expects them. At Stripes, we only invest in companies that make amazing products, and Novo’s rave reviews, high retention, and incredible growth make it clear that they’ve built something small businesses love.

“This will help reduce cash flow frictions and implement technologies in banking and engineering to drive system advancement,” Michael rangel, CEO and co-founder of Novo, said in the press release.

“With this additional funding, Novo will take a huge step forward in improving small business cash flow. In the months and years to come, our small business clients will be able to access their funds faster than they can. ‘never thought possible,’ he added.

Created by Tyler McIntyre and Michael rangel, Novo promotes itself as a customer-centric banking platform that aims to provide users with banking flexibility. It claims that users can create a business checking account digitally in minutes, with no minimum balance requirement, no hidden fees or paperwork. It also offers free corporate control services and debit card access.

Michael added, “After speaking with thousands of our more than 150,000 customers over the past few years, one theme keeps coming up: plus you can help a small business remove all the red tape and friction around the flow of money. cash, the better for this business. ”

“For small business owners, the technology that powers their digital banking platform should take a back seat,” said Tyler McIntyre, CTO and co-founder of Novo.

Novo’s latest round of funding comes at a time of significant growth for the company. he exceeded $ 5 billion in lifetime transactions – process more than $ 4 billion in transactions in 2021 alone and enter 2022 with a transaction volume of more than $ 7 billion.

Ajar Upadhyay, Director of Operations – India, Novosaid: “At Novo, we have support operations in India in Gurugram, Ahmedabad and Bengaluru. After successfully securing Series A and B funding from our investment partners, we are focusing on the next stage of expansion, which is hiring over 200 talented employees from middle and senior management in banking roles and engineering in India over the next six months. and build an organization that is motivated and growing and take new steps in India, “

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Michael C. Sumner