Pomelo, a San Francisco-based fintech startup, has raised $5 million in seed funding to revolutionize how people send money abroad.
The funding round counted with participation from investors like capitalist Josh Buckley, Xfund, Afore Capital, and Abel Tesfaye. The startup has also partnered with organizations like MasterCard, Coastal Community Bank, and TransUnion.Eric Sprink, Coastal Community Bank president and CEO, said about the startup’s potential to disrupt the industry:
“When it comes down to it, banking is about trust. Pomelo is weaving together expertise in financial technology with a true focus on the people at the heart of its business. Pomelo gives U.S. immigrants and their families an opportunity to build a financial future, which is why we were eager to be involved.”
Pomelo was founded in 2020 with the mission to combine credit and international money transfers in a unified platform that allows its users to build credit while paying no fees. The money transfer experience has failed to take advantage of the fast technological development of the last week, affecting millions of migrants in the process. Eric Velasquez Frenkiel, Pomelo Founder and CEO, referred to how the startup will change this reality by stating:
“Pomelo is on a mission to make the American Dream more attainable for U.S. immigrants, while providing financial stability for their families back at home. The annual outflow of remittance from the U.S. to countries like the Philippines and India is staggering, yet there remain few safe and cost-effective options to send funds to loved ones. Pomelo plans to change that.”
Remittances are the most important link between migration and development, representing a volume of $508 billion in 2020 which was 7.2% lower than the previous year. Pomelo believes it can revolutionize the industry by offering an accessible service that not only offers more convenience but also helps boost development in the United States and elsewhere.