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Novo, a preferred business banking partner for SMEs, start-ups and freelancers, has raised $40.7 million (₹302 crore) in a Series A round of funding, making it the highest Series A funding for neobanks.
The independent tech company that enables small businesses to open accounts in minutes without a minimum balance requirement has raised the capital from Valar Ventures along with Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup.
Founded in 2016 by Tyler McIntyre and Michael Rangel, Novo has a client base of over one lakh SME customers. A neobank is a bank that is 100 per cent digital and does not operate physical branches.
Commenting on the funding, Michael Rangel, Co-Founder & CEO, Novo, said in a statement, “Novo has witnessed deeper investor interest in recent times, especially owing to the pandemic enhancing the role of virtual support ecosystem. India, being one of the fastest growing economies, is a vital market for us. Novo is focussed on creating jobs in India in support operations and building advanced technology, enabled by our funding partners. Presently, Novo has a strength of over 50 employees in India and plans to triple it to 150 by this financial year (FY22).”
Ajar Upadhyay, Director of Operations - India, Novo, said, “At Novo, we have support operations in India across Gurgaon, Ahmedabad and Bengaluru. The funding will be utilised to expand operations, banking, product and, most importantly, engineering verticals and enhance hiring across key and support roles in India.”
Prior to this Series A round, Novo had raised $6.7 million in its seed Round from Crosslink Capital, Red Sea Ventures, Hack VC, RRE, Rainfall, and the Stanford Law School Venture Fund.
Novo brings banking services to the largely underserved communities of freelancers, start-up founders, and small business owners.
At no hidden charges, Novo allows its clients to open business checking accounts in an enviable span of minutes and assures them of safe and secure transactions. The funding will enhance Novo’s platforms and services to provide a compelling banking experience to its clients.
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