Fintech NovoPayment raises first round of venture in 15 years to expand its full banking API platform TechCrunch

Digital transformation of banking and payment services is a red hot trend that shows no sign of slowing down. Banking products and services (BaaS) as Synapse, Unitand Link helped drive change by allowing companies to rapidly create new financial services using APIs.

NovoPayment is a global BaaS startup based in Miami primarily focused on providing its API platform to customers in the Latin American market. It has developed a full, multi-currency solution with three main categories – data banks, payment infrastructure and card solutions, founder and CEO Anabel Perez told TechCrunch.

Founded in 2007 by Perez and Oscar Garcia Mendoza, who is currently the chairman of the board of directors of Novopayment, NovoPayment was bootstrapped from its inception until raising its Series A round earlier this year, the company announced today. It previously raised an undisclosed seed round from its own founders, but the $19 million Series A marks its first institutional funding, according to Perez, who worked as a banker in Venezuela for two decades before launching NovoPayment.

Fuel Venture Capital and IDC Ventures co-led the Series A round, which involved Endeavor Catalyst (the joint venture company co-invested with Endeavor) and Visa’s venture arm, according to the company. The fundraising also marks a personal achievement for Perez, as a Latina female founder with venture backing; less than 2% of venture dollars raised in 2021 goes to all-female founding teams, data from Pitchbook displayed.

Fintech Novopayment Founder and CEO, Anabel Perez

Founder and CEO of NovoPayment, Anabel Perez Image credits: NovoPayment

About 85% of NovoPayment’s customers live in LatAm, in countries including Venezuela, Chile, Columbia, Peru and Mexico as of September last year, with the remaining 15% in the United States, PaymentsDive reported. Although Perez did not provide an up-to-date breakdown, she says that many of the company’s ~50 current clients, including banks and credit unions, are in multiple markets.

“They needed a single platform that could help them launch these new use cases in multiple countries,” said Perez.

The company saw its customer base grow 40% last year and expects similar growth this year. Perez added that the company’s revenue is in the tens of millions of dollars and the company is in “pretty good health,” though she did not provide more specifics about the company’s finances.

According to Perez, it plans to use the new funding to acquire new customers, particularly in the US market, as Miami continues to grow as a hub for the financial services sector. The funding will also help NovoPayment add capabilities to its existing product for customers in existing markets and add 100 new employees to its current team of more than 340 employees, she said.

The integration of NovoPayment is its main advantage in winning customers, says Perez. Financial service providers typically look for technology providers one by one and connect them only later when the need arises, a practice that has been in place for many years and continues over time. time, she added.

That’s why it’s so expensive for them to maintain and get their infrastructure, as well as too expensive for them to be able to comply with regulations and standards,” said Perez.

Since its inception, Novopayment has focused on building a technology platform that connects all the critical processes together for financial institutions to build their digital banking services, said Perez. speak. Its services are so broad and unified that customers don’t need to connect to providers outside of its cloud, she added.

Since the company has been iterating its product for more than a decade, its product is “better, faster, and more cost-effective” than its competitors, Perez said. NovoPayment is connected to more than 60 endpoints through its unique technology stack and is independent of other models – She added.

“We invested a lot of time designing and building this platform that not only serves the US market, but has been proven and tested to serve 30 more markets across the Americas,” said Perez. .

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