Novo announces $35m in funding

By Edlyn Cardoza

Novo, the powerfully simple FinTech platform for small businesses, announced that GGV Capital has joined the company’s Series B as a strategic investor with an additional $35 million. This brings the FinTech’s Series B to $125 million and total equity funding to more than $170 million. Robin Li, Principal, GGV Capital, will join the board as an observer.

“Over the last year, we’ve added incredible new functionality to the Novo Platform and brought on tens of thousands of new small business customers,” said Michael Rangel, CEO, and co-founder of Novo. “GGV has been instrumental in scaling some of the world’s most successful technology companies across industries, from Airbnb to Square. With their support, we look forward to reaching millions more small businesses in the coming years.”

Since the fall of 2021, the FinTech has launched a range of new capabilities for helping small businesses centralise their finances and speed up their cash flow, including:

• Novo Apps is a comprehensive app marketplace that lets small businesses customise their banking experience. Novo Apps offers dozens of native integrations and over one thousand connections to applications small businesses use daily. Instead of jumping between several applications for tasks such as sending out invoices or getting a comprehensive overview of cash flow, the app creates an ecosystem in which business owners connect their disparate tools to a single place to run their business.
• Novo Boost for giving small businesses and freelancers same-day access to payments received through Stripe and Express ACH for processing same-day ACH payments. With Novo Boost plus Express ACH, the typical week-long process of moving money from an e-commerce platform to a business checking account and then using these funds to pay yourself or a vendor can now happen in one day.

“What’s impressed us most about Novo is their ecosystem approach to small business checking — they’ve built a robust, intuitive platform that allows SMBs to connect all of their business and financial applications to their Novo account,” said Hans Tung, managing partner at GGV Capital. “I’m confident that Novo will continue to scale its app partnerships effectively, and become one of the most widely-used small business checking accounts in the United States.”

Novo is announcing this additional capital during significant growth for the company. The company has surpassed over $12 billion in lifetime small business transactions and has brought on more than 180,000 small business customers.