US startup Pomelo has successfully raised $35 million in a Series A funding round to develop its innovative credit-building remittance app and card.
Investors in this round included Vy Capital, Founders Fund, and A* Capital, alongside an additional $75 million secured for the expansion of its warehouse facility.
The Pomelo Mastercard and app, issued by Coastal Community Bank, are available to US citizens and permanent residents aged 18 and older. Cardholders can invite family members abroad to join their family plan, granting them access to both virtual and physical cards for online and in-store purchases.
Pomelo offers customers competitive real-time exchange rates for every transaction. Unlike traditional money transfer services, Pomelo generates revenue through merchant interchange fees and daily foreign exchange rates, eliminating transfer fees for users.
Launched in 2022, Pomelo initially focused on the Philippines as its first corridor. Since then, it has expanded payment options, including the ability to send funds to GCash, a widely used e-wallet.
Keith Rabois, an early investor and board member, highlighted Pomelo’s unique approach, stating, “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.”