The Chainsmokers join funding of newly launched PayTech Pomelo

The Chainsmokers join funding of newly launched PayTech Pomelo

PayTech startup Pomelo, which aims to improve money transfers, has reportedly raised $20m in seed funding, alongside a $50m warehouse facility.

The founding round comes as the FinTech company launches out of stealth, according to a report from TechCrunch.

Founders Fund general partner Keith Rabois and A* co-founder and general partner Kevin Hartz led the $20m equity investment. Commitments also came from Afore Capital, Xfund, Josh Buckley and The Chainsmokers.

The $50m warehouse facility will help Pomelo give upfront cash to people that want to make transfers.

Pomelo is currently available in the Philippines, but is planning to launch in Mexico and India, among other geographies.

The FinTech company claims to reinvent money transfer through credit. Its credit card lets people send money or buy products and settle the bill at a later date. Usage of the platform helps the user build their credit score.

Pomelo also offers a physical card that can be used anywhere Mastercard is accepted. It offers a family account that can have up to four cards active. The main account holder can establish spending limits, pause any card and view how each user is spending.

The Chainsmokers have made several investments into the FinTech sector. Earlier in the year, the duo supported the $55m investment round of Indonesia-based Plaung. The company offers fractional investing, with access to micro-savings and micro-investments into gold, indexes, mutual funds and crypto assets.

Last year, the band were among the investors in the $10m Series A of Brazil Z1. The neobank aims to provide teenagers and young adults in Latin America with access to a digital banking app and prepaid card.

The Chainsmokers are not the only celebrities to back Pomelo. Pomelo previously closed a $5m seed round last year, with Canadian singer The Weeknd contributing capital.

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