- 🖊️ Startup Name: Pomelo
- 📍 Headquarters: Buenos Aires, Argentina
- 📅 Year Founded: 2021
Pomelo was founded by three experienced entrepreneurs:
- Gaston Irigoyen (CEO)
- Hernan Corral (CPO)
- Juan Fantoni (CCO)
The founding team has vast experience in financial services industry. Gaston Irigoyen, was previously CEO at Naranja X, and CMO & CRO at Restorando, a company acquired by The Fork. Hernan Corral was CPO at Naranja X, Argentina's largest neobank, and Head of Digital Accounts at MercadoPago; MercadoLibre's Fintech arm. Juan Fantoni, spent 6 years at Mastercard, with his latest role being Director fo Fintech & Digital Partners.
Payment infrastructure in Latin America is outdated and inefficient. This infrastructure is not equipped to handle the needs of modern fintech companies and other businesses that require a reliable, fast, and secure payments system. Many of the existing payment systems in the region are slow, expensive, and prone to errors, which can be a significant obstacle for businesses looking to grow and expand. In addition, the lack of a modern payments infrastructure can make it difficult for people in the region to access financial services and participate fully in the economy.
To solve this, Pomelo has created a modern payments infrastructure that is designed to address the challenges faced by businesses and consumers in Latin America. The company offers a suite of payment solutions that includes a payment gateway, digital wallet, and card issuance platform. These solutions are built on top of a secure and scalable infrastructure that can handle large volumes of transactions in real-time.
Pomelo's payment gateway is designed to provide businesses with a simple and easy-to-use payment processing solution. It supports a wide range of payment methods, including credit and debit cards, bank transfers, and digital wallets. The gateway is also designed to be highly secure, with advanced fraud prevention and risk management features.
Their digital wallet allows consumers to store and manage their funds online. The wallet supports multiple currencies and can be used to make payments, transfer funds, and pay bills. It also includes features such as budgeting tools and transaction history tracking, which can help users manage their finances more effectively.
Pomelo's card issuance platform allows businesses to issue their own branded payment cards. This can be a powerful tool for increasing brand visibility and customer loyalty. The platform supports both physical and virtual cards and includes features such as cardholder self-service, real-time card activation, and card usage monitoring.
🧑 Target Customer
Pomelo's target customers are fintech companies in Latin America. Pomelo aims to provide these companies with a new payments infrastructure to enable them to offer fintech products and process transactions more efficiently and effectively. By doing so, Pomelo hopes to help these fintechs better serve their own customers and expand their businesses throughout the region.
💳 Business Model
Pomelo charges fees to these fintech companies for using their payment infrastructure, which is their primary source of revenue. Additionally, they may generate revenue through value-added services such as fraud detection and prevention, currency exchange, and other financial services.
Since its launch in 2020, Pomelo has gained significant traction. They have expanded to Brazil, Mexico, Colombia, and Peru. Pomelo has over 60 clients, including Rappi, Bitso, Ripio, Agrotoken, Capim, Moeda Pay, Kapital, and PayJoy.
Although Pomelo is not a Fintech, but rather a PayTech that offers the infrastructure for these fintechs to offer products, Pomelo could face competition from other large players in the Latin American market, such as Nubank, Mercado Pago, and Ualá. Despite this, Pomelo's state-of-the-art infrastructure gives them an advantage, and puts a high barrier of entry to the indsutry.
Pomelo has raised USD $60M in funding to date from leading investors, including Sequoia Capital, QED Investors , Tiger Global Management, and Ribbit Capital, among others. In 2022, Pomelo extended their series A round by USD $15M to a total of USD $50M.
The company plans to use the funding to expand its product offerings, enter new markets, and hire additional staff.
Pomelo sees significant opportunities for growth in the Latin American region, as The company plans to continue to innovate and expand its product offerings to meet the evolving needs of its Fintech companies in Latin America.
Pomelo faces several challenges in the future, including regulatory hurdles, competition from established financial institutions, and the need to scale its operations regionally. The company also recognizes the need to continue to innovate and stay ahead of emerging trends in the fintech industry.
📅 What's Next?
Pomelo's next steps include expanding its product offerings, entering new markets, and building out its skilled team. The company plans to continue to focus on customer experience and innovation, while also maintaining a strong financial position and sustainable growth strategy. With its talented team, innovative products, and strong financial backing, Pomelo is well-positioned to continue to revolutionize the financial infrastrucutre industry in Argentina and beyond.