Novo is a digital neobanking platform for small business owners, freelancers, and entrepreneurs. It provides clients with an app to enable them to plug tools from such third parties as accounting software Quickbooks or payment processor Stripe. The platform is powered by a network of FDIC-insured community banks.
The funding was raised from GGV capital. This round is an extension to the Series B funding round, that was held earlier this year. Novo plans to use the new capital for small business lending product development. The company also aims to streamline small businesses’ cash flow with the help of such products as Novo Boost.
Novo, Miami, USA, was founded by Michael Rangel, Rijk Plasman, and Tyler McIntyre in 2016. As of now, the company has approximately 200 000 customers, in comparison to 140 000 ones at the end of 2021. “Banks have largely driven a one-size-fits-all product to very different types of businesses and forced that square peg through the round hole for many years. We put that on its head and allow small businesses to customize their own products by plugging in the tools used to run the business right into the checking account,” Michael Rangel.