SMB banking platform Novo raises US$90 million at a value of US$700 million led by Stripes

Novo business banking

Jan 12, 2022: Gurugram, Haryana, India: After successfully securing Series B, the small business banking platform, Novo is competing to hire 200+ talented employees from middle and top level management in banking and engineering roles in India over the next six months.

Simple small business banking platform, Novo today announced that the company has raised $90 million in Series B funding at a valuation of $700 million.

Stripes led the round, with continued participation from existing investors Crosslink Capital, Velar Ventures, Boxgroup and Rainfall Ventures. This latest round brings Novo’s total funding to more than $135 million.

“After speaking with over 150,000 of our customers over the years, one theme keeps coming up: the more you can help a small business remove all the red tape and friction around cash flow, the more that business is,” Novo CEO and co-founder Michael Rangel said.

“With this additional funding, Novo will make a huge leap forward in improving cash flow for small businesses”.

In the coming months and years, our small business customers will be able to access their funds much faster than they ever thought possible.”

With an additional $90 million in funding, Novo will build out modern lending capabilities, integrations and proprietary products that allow small businesses to send and receive money more quickly with new advanced features which entail a series of enhancements followed by Novo’s announcement in 2022..

It will help in implementing technologies in banking and engineering back-end operations to reduce cash flow friction and promote system advancement.

“For small business owners, the technology powering their digital banking platforms should fade into the background,” said Tyler McIntyre, CTO and Co-founder of Novo.

Director of Operations – India, Novo, Azar Upadhyay  said, “At Novo, we have support operations in India in Ahmedabad, Gurgaon  and Bengaluru.

After successfully securing Series A and B funding from our investment partners, we are looking forward to the next expansion step, which is to hire 200+ talented employees from middle and top level management in banking and engineering roles in India for the next six months and build an organization that inspires and grows and Achieve new milestones in India.

Novo’s latest funding round comes at a time of significant growth for the company. Novo has crossed $5 billion in lifetime transactions – processing over $4 billion in transactions in 2021 alone, and entered 2022 with a run-rate transaction volume of over $7 billion.

Novo also opened its new headquarters in Miami. Novo has received several awards including Money Magazine’s “Best Business Checking Accounts of 2021” CNBC’s “Best Business Checking Accounts”, and The Banker’s “Most Innovative Bank in North America”.

“Despite being the heart of the US economy, more than 30 million small businesses in the US have always struggled to access basic financial services because they are constantly overlooked by big banks,” said Sagar Kulkarni, partner at Stripes who will be Joining Novo’s Board of Directors.

“What sets Novo apart is a fundamentally different approach to helping small businesses succeed.

Rather than opting for incremental change, Novo built its banking platform from the ground up so that it not only in order to deliver a great digital banking experience, but also really bring Novo financial products to the customer base they are craving for.

At Stripes, we only invest in companies that build amazing products, and reviews, strong retention and the incredible growth makes it clear that it has created something that small businesses love.”

About Novo

Novo is a simple business-banking platform built in for small business owners with no hidden fees. Simplify your business finances with Novo.

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Source: Novo