[Funding alert] Small business banking platform Novo raises $40.7M in Series A round

US-based small business banking platform Novo has recently secured $40.7 million (Rs. 302 crores) in Series A round led by Valar Ventures along with Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup.

According to the official statement, the funding will be utilised to expand India operations

Commenting on the funding, Michael Rangel, Co-Founder & CEO, Novo, noted,

“Novo 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 this Financial Year (FY 22)”

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Established by Tyler McIntyre and Michael Rangel, Novo is a customer-first banking for the modern entrepreneur, giving users the flexibility to bank on their own terms.

It allows users to easily create a robust business checking account digitally in minutes, with no minimum balance requirements, no hidden fees, no paperwork, plus free business checking and debit card access.

With a focus on customer service and user experience, Novo offers integration with Slack, Stripe, Xero, Zapier, and TransferWise to give entrepreneurs real-time insights and notifications on the financial health of their small businesses. Novo is based out of New York City with a full-time development team in India.

Till date Novo 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.

Ajar Upadhyay, Director of Operations - India, Novo, stated, “At Novo, we have support operations in India across Gurgaon, Ahmedabad and Bengaluru. The funding will be utilised to expand Operations, Banking, Product and, most importantly, Engineering verticals, and enhance hiring across key and support roles in India.”