Novo

Novo provides banking services to SMEs and freelancers via a web portal and a mobile app. The company does not own its license and therefore operates under the license of Middlesex Federal Savings. The company targets SMEs with annual revenues ranging between USD 25,000 to USD 500,000.

The company provides business checking accounts inclusive of physical and virtual debit cards, which can also be used via digital wallets, such as Apple Pay or Google Pay. The platform also enables customers to make payments directly via the app. In addition, the company also enables businesses to create sub-accounts, dubbed as ‘reserves’, which enables customers to budget and allocate funds separately for specific purposes, such as taxes and payroll. Furthermore, the platform also enables customers to deposit checks directly via the app by uploading a picture of the check. Customers can also link external bank accounts to their Novo account to simplify the process of transferring money between apps. All products are offered free of charge with fees only being charged in the case of insufficient funds or uncollected funds returned.

In August 2023, the company launched Novo Funding, providing SMEs with access to working capital loans of up to USD 75,000. The company offers customers a streamlined application process and claims to review applications within 24 hours. Customers will only need to pay interest on utilized funds, with repayment periods spanning six months.

Key customers and partnerships

As of January 2024, Novo had amassed over 200,000 small business customers.

The company also allows customers to accept debit and credit card payments in partnership with Stripe, a FinTech infrastructure provider, and accept invoice payments via Square, a digital payments company. In addition, the platform also enables customers to integrate various business tools into their Novo accounts, such as Shopify, Zero, and Slack. It also partnered with Check, a payroll infrastructure company, to introduce Novo Payroll, a suite of comprehensive payroll solutions.

Funding and financials

In August 2023, Novo secured USD 125 million credit facility from Victory Park Capital. The newly acquired funds were channeled towards supporting Novo Funding.