Novo announced Tuesday (January 11) that it has raised $90 million in Series B funding, bringing the valuation of the small banking platform to $700 million.
The Stripes funding round was led by previous investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup. With Series B, Novo has raised more than $135 million.
“With this additional funding, Novo will take a huge leap forward in improving cash flow for small businesses,” said Michael Rangel, CEO and co-founder of Novo, in a press release. “In the coming months and years, our small business customers will be able to access their money faster than they thought possible.”
With the additional $90 million in funding, the Miami-based company says it will build state-of-the-art lending capabilities, integrations, and proprietary products that allow small businesses to send and receive money more quickly.
Read more: Novo introduces billing and budgeting with a banking services offer for small and medium businesses
The past year has seen Novo make a number of improvements to its product, including Novo Invoicing, which allows users to set up and control an unlimited amount of invoices, and Novo Reserve, which is used to allocate funds for emergencies or capital investments.
The platform has also added new functionality that includes self-service capabilities for adding a Novo Card to a digital wallet, as well as integration with Shopify, Stripe, and Square.
Novo also raised $40.7 million in venture capital last year, money the FinTech said would be used to build on its platform and double its staffing.
Read more: FinTech Novo acquires $40.7 million to support growth
The company says this latest funding round arrives at an era of significant growth for the company, which processed more than $4 billion in transactions last year and entered 2022 with an operating rate transaction volume north of $7 billion.