A Fintech Startup, NOMOD, Has Raised $3.4M in Seed Funding
At the valuation of $50 million, emerging fintech startup Nomod has raised $3.4 Million to allow payments without any hardware for merchants.
In many emerging countries, small and medium-sized businesses still struggle in getting their payments processed. There are several reasons for this blockage. However, the most prominent reason for their expulsion from the global financial ecosystem is their size. Moreover, the cost of the material from the providers is also very high.
Nomod is a Uk-based fintech startup. It aims to help the emerging countries by providing them the facility to bypass the card terminal. It provides a platform that enables businesses to accept payments on their phones without any extra hardware. The company, because of its vital idea, has raised $3.4M at a valuation of $50 million.
Nomod recently graduated from Y-Combinator and has received investment led by Global Founders Capital. However, Kingsway Capital, Goodwater Capital, and angels from the Valley and globally, including a partner from DST Global, also participated in the seed funding round.
Payments will act as the company’s flywheel to acquire a merchant base and build out a financial operating system, said the founder and CEO Omar Kassim.
Nomod has a significant user base in Saudia Arabia, UAE, and Bangladesh. Because in these countries either it is a very tedious process to get cards and set up the banking process or global banking services are not available.
In KSA, there are more than 1 million businesses. But only 3% of them have access to bank credits. Similarly in UAE, opening and setting up a business bank account can take up to six months.
Nomod successfully and timely realized this gap and tapped the potential of introducing a digital platform. Businesses can simply download the mobile application of Nomod and process in-person payments and other payment links from the clients efficiently.
The technology divide in the world is present at different levels. Many of the Asian and African countries do not have a sufficient grip on the technology which makes it difficult for them to grow in the world of technology.
Moreover, the banking sector is not welcoming technology. UAE and Saudia are developed countries with strong GDPs. Yet their banking sector operations are slow. This is the reason that people are moving towards digital banking services or the Fintech industry.
With the increasing demand for fintech software development, the banking sector is moving towards efficiency and digitization. It will not be wrong to say that fintech is disrupting the banking sector. To further improve the user experience, the fintech industry is also putting big data at work.