US startup Pomelo has raised $35 million in a Series A funding round for its credit-building remittance app and card.
Vy Capital, Founders Fund, and A* Capital joined the round for Pomelo, which has also secured a $75 million expansion of its warehouse facility.
Issued by Coastal Community Bank, the Pomelo Mastercard and app is available to US citizens and permanent residents 18 years and older. Cardholders can then invite their loved ones abroad to join their family plan. These people get a virtual and physical card that they can use for shopping online or in-store.
Pomelo says customers get the best real-time exchange rate for each purchase made. Unlike traditional money transfer services, Pomelo is paid by the merchant via interchange and daily foreign exchange rates, eliminating transfer fees for customers.
The product launched in 2022 with the Philippines as its first corridor and has since added new payment options, most notably the ability to send funds to GCash, the popular e-wallet.
Keith Rabois, an early Pomelo investor and board member, says: "Pomelo stands out through a fundamentally different approach to remittance transfer by using credit as its foundation. 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."