New Fintech Launches with $20M in Seed Capital, $50M Stock to Be the First to Combine Credit and International Money Transfer
Pomelo launches a new type of credit card that enables US families to extend their credit abroad while avoiding expensive transfer fees – an industry first
SAN FRANCISCO, 16 August 2022 /PRNewswire/ — Pomelo announced a Series Seed of $20 million in venture capital and 50 million dollars in storage facilities for total 70 million dollars in seed financing, and is the first company to combine credit and international money transfer. Pomelo also announced its official launch and availability to serve its first corridor, The Philippines. Keith Rabois at Founders Fund as well Kevin Hartzco-founder of Xoom and General Partner, at A* Capital led the round with Afore Capital, Xfund, Josh BuckleyThe Chainsmokers and the Weeknd are also investing in the round.
“Pomelo is on a mission to fundamentally change how international money transfer works,” said Eric Velasquez Frenkiel, founder and CEO of Pomelo. “Our goal is to help our customers establish their financial future in here the United States by building positive credit history with their existing transfer obligations, and to include their loved ones financially in emerging economies with access to modern financial instruments. For many of our customers, Pomelo is their first credit card here in the US and the very first card for their loved ones abroad.”
Frenkiel brings entrepreneurship and engineering experience from his previous work at other start-up companies. Before founding Pomelo, he co-founded Singlestore, now highly valued 1 billion dollarswhich he led as CEO from 2011 to 2017. Educated Stanford University School of Engineering and early engineer at Meta, Frenkiel was previously named to the Forbes 30 under 30 list of technology innovators for Singlestore. Frenkiel founded Pomelo after many years of experiencing the challenges of money transfer firsthand.
The company also announced its official launch and availability of the product to serve the US-Philippines corridor. After several months in private beta, customers love the fact that the product is both free and personally beneficial.
“It’s been a game changer for me. Pomelo is so much easier than sending money and the immediate feedback on my family’s spending gives me peace of mind,” said John Simbajona physical therapist sending money to three family members in Bohol, Cebu and Cagayan de Oro i The Philippines with Pomelo. “We’ve saved money with real-time rates and no transfer fees. Pomelo makes me the ‘bank’ for my family.”
“When it comes down to it, banking is about trust,” said Eric Sprink, President and CEO of Coastal Community Bank. “Pomelo weaves together expertise in financial technology with a real focus on the people at the heart of the business. Pomelo gives American immigrants and their families an opportunity to build a financial future, which is why we were eager to be involved.”
“It’s amazing to me that something like Pomelo doesn’t already exist,” said Abel Tesfaye, also known as the Weeknd, who invested in the seed round. “Pomelo’s focus on connecting families across borders and doing what’s right for their customers is both powerful and refreshing. Investing in such a company was easy.”
Product
The Pomelo Mastercard is issued by Coastal Community Bank, under a license from Mastercard International, and has a mobile app available on both Android and iOS. US citizens and permanent residents 18 and older can apply for the Pomelo Mastercard and invite loved ones abroad to join their family plan. Pomelo sends loved ones a virtual card instantly and a physical card via courier, making it easy to shop online and swipe at the checkout instead of handling cash.
Pomelo ensures that customers get the best real-time rate for every purchase made with the Pomelo Mastercard, eliminating the need for tedious price hunting. Unlike traditional money transfer services that can charge up to 6% in transfer fees, Pomelo is paid by the merchant via exchange and daily exchange rates, eliminating transfer fees for customers.
For those with low or no credit, the company offers a secured version of the Pomelo Mastercard, which allows customers to establish or build credit with the funds they would normally pay.
“Establishing credit is critical to financial well-being in the United States, but it’s often challenging for new Americans,” says Frenkiel. “Even when financial activity is conducted in a responsible manner, individuals credit remains invisible unless it can be reflected on the credit score. Pomelo makes it possible to not only save up to several hundred dollars per year, but to be rewarded for helping the family. It does a win-win result for our customers.”
To apply for the Pomelo Mastercard, visit www.pomelo.com.
Media contact
[email protected].com
SOURCE Pomelo, Inc.
