Novo, a neobank for small businesses, startups and freelancers, on Wednesday said it has raised $40.7 million ( ₹302 crore) in a Series A round of funding.
The tech company that enables small businesses to open accounts without a minimum balance requirement has raised the capital from Valar Ventures along with Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup.
“The funding will be utilized to expand operations, banking, product and, most importantly, engineering verticals and enhance hiring across key and support roles in India,” Michael Rangel, co-founder and chief executive, Novo.
He said the company has witnessed deeper investor interest in recent times, especially owing to the pandemic enhancing the role of virtual support ecosystem.
“India, being one of the fastest growing economies, is a vital market for us. Novo is focused on creating jobs in India in support operations and building advanced technology, enabled by our funding partners. Presently, Novo has a strength of over 50 employees in India and plans to triple it to 150 by FY 22,” said Rangel.
Ajar Upadhyay, director of operations in India said Novo has support operations in India across Gurgaon, Ahmedabad and Bengaluru.
Till date Novo said it has raised $6.7 million in its Seed Round from Crosslink Capital, Red Sea Ventures, Hack VC, RRE, Rainfall, and the Stanford Law School Venture Fund. Founded in 2016 by Tyler McIntyre and Michael Rangel, Novo has a client base of over 100,000 small and medium enterprise customers.
This article was first published on livemint.com.