Novo raises an extra $35 million to support operations in India

• ByStartupStory     |    December 1, 2022

A further $35 million from GGV Capital has been secured by Florida-based fintech company Novo Platform Inc., bringing the total amount raised in the company’s Series B round to $125 million. According to a press release, Robin Li, the principal of GGV Capital, will serve as an observer on the board of Novo after choosing to take a strategic investment in the company. The funding will be used to speed up hiring for top and middle-level positions and to improve its technological infrastructure in India, with a focus on growing its operations there.

The fintech company had secured $90 million in its Series B round, which was backed by Stripes LLC and valued at $720 million, in January. A total of $170 million has been raised so far, including earlier capital raise rounds. This round of financing also included some previous investors, such as BoxGroup, Valar Ventures, Crosslink Capital, and Rainfall Ventures.

We are focusing on the following expansion plan, which calls for hiring talented people in middle and top-level management positions in banking, data, and engineering in India over the next six months, after securing Series A and B funding. By the end of the following year, we anticipate doubling our current staff.This will enable us to build a driven team that is growing to hit new milestones in India, according to Ajar Upadhyay, Director of Operations for Novo India.

The fintech company currently has offices in Gurugram, Bengaluru, and Ahmedabad and employs about 211 people in India. In 2019, Novo began operating in India, where it now oversees roughly 70% of the back-end support for the fintech platform.

In 2018, Tyler McIntyre and Michael Rangel started Novo in New York. The company provides a financial platform and business checking account designed for small and medium-sized enterprises. Additionally, it provides a marketplace for apps that let users integrate tools from outside sources, such as payment processors or accounting software, into their checking accounts. For payments processed through Stripe, the platform also provides Novo Boost, a cash flow generation tool for SMBs. The virtual card from Novo Bank and Novo Reserve, which provide transaction access without a physical card and a financial tracker, are two additional services available.

The fintech company claims to have signed up more than 180,000 small business customers and to have transacted more than $12 billion in small business transactions to date. Through 2021–27, the global fintech market is projected to grow at an annualised rate of 19.71%, according to a report by researchandmarkets.com. The market was valued at $131.14 billion in 2021, and the report predicts it will grow to $385.93 billion by 2027.

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