Novo

What Novo does

Novo is a US-based fintech company that operates a digital banking platform for independent small businesses, freelancers, sole proprietors, and startups. The company is structured as a software platform rather than a chartered bank, with banking services provided through a Banking-as-a-Service partnership with Middlesex Federal Savings, F.A., which provides FDIC insurance coverage up to $250,000. Novo Platform Inc. is the operating entity, headquartered in Miami with a New York regional office and an engineering and operations presence in India.

The platform is built around a free business checking account as the core product, extended through integrated modules including Novo Invoicing (free unlimited invoicing with automatic reminders), Novo Bookkeeping (AI-powered expense categorization), Accept Payments (ACH, card, and peer-to-peer), Pay Vendors & Employees (free ACH, Express ACH, wires, mailed checks), Novo Reserves (budgeting and auto-allocation), and Novo Funding (merchant cash advance via the wholly owned subsidiary Novo Funding LLC). Card products include a Mastercard-branded Business Debit Card and a Business Credit Card offering up to 2% cashback with no annual fee. The technology stack is cloud-based and embeds third-party foundation models (Claude, OpenAI, Gemini) for onboarding automation, expense categorization, and the Novo Assist chatbot, with 24/7 fraud anomaly detection. The platform integrates with 20+ third-party tools across accounting (QuickBooks, Xero), payments (Stripe, Square, PayPal), ecommerce (Shopify, Etsy, WooCommerce, Amazon Seller, eBay, Squarespace), and payroll (Gusto).

Novo monetizes primarily through interchange fees on debit and credit card transactions, revenue from merchant cash advances and business loans offered to customers active for at least six months, and cashback economics on credit card spend. Pricing is freemium: no monthly fees, no minimum balance, free standard ACH transfers, free incoming wires, and free invoicing. Distribution is fully self-serve and digital, relying on direct online signup, a mobile app (iOS 4.8, Android 4.5 ratings), and inbound traffic from integration partner ecosystems. The go-to-market motion is product-led growth targeted at SMBs, and the company has raised approximately $165.7 million in equity across Series A ($40.7M, Valar Ventures, June 2021), Series B ($90M at $700M valuation, Stripes, January 2022), and an undisclosed round ($35M, Notable Capital, November 2022), plus a $125 million debt facility from Victory Park Capital in August 2023. The company serves over 250,000 independent businesses and has processed more than $55 billion in business spend.

Name

Novo

Legal name

Novo Platform Inc.

Website

https://novo.co

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

101–250 employees

Short description

Novo is a US-based fintech providing a free digital business banking platform to over 250,000 independent small businesses, freelancers, and entrepreneurs, offering checking, invoicing, expense management, payments, and credit products via a Banking-as-a-Service partnership.

Ownership category

akta.pro rank

Product category

Small Business Digital Banking

NAICS

Depository Credit Intermediation (5221), Sales Financing (52222)

SIC

Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Embedded Deposit Accounts & Digital Wallet Infrastructure (FSAGALAE)

akta.pro secondary industry

Embedded Payments (Pay-ins, Pay-outs, Wallets) (FSAGALAB)

Keywords

• Small business banking
• Business checking accounts
• Merchant cash advances
• Digital invoicing software
• Business expense management

Headquarters

HQ city

Miami

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Interchange Fees: Revenue generated from debit and credit card transactions processed through the platform. The platform processes over $55B in business spend.
2. Credit Products: Revenue from Merchant Cash Advance products and business loans offered to existing customers who have been active for at least 6 months.
3. Cashback Rewards Optimization: Revenue from interchange fees on credit card spending where customers earn up to 2% cashback.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Novo provides a free digital banking platform built for independent small businesses, freelancers, and entrepreneurs, delivered through a fintech-as-a-service model with FDIC-insured business checking accounts (up to $250,000) provided via partner bank Middlesex Federal Savings, F.A. The platform integrates invoicing, payment acceptance, vendor and employee payments, business debit and credit cards with cashback, budget reserves, AI-powered bookkeeping with expense categorization, and merchant cash advances into a unified ecosystem accessed entirely online and via mobile apps.

Product overview

Novo is a fintech platform (not a bank) that provides small business banking services through its partnership with Middlesex Federal Savings, F.A. The platform operates as a unified ecosystem centered around a free business checking account, supplemented by integrated modules for invoicing (Novo Invoicing), payment acceptance (Accept Payments), vendor/employee payments (Pay Vendors & Employees), expense management (Novo Bookkeeping), and business funding (Novo Funding/Merchant Cash Advance). Physical and virtual card products include the Novo Business Debit Card and Novo Business Credit Card (offering up to 2% cashback). Novo Reserves enables budgeting and auto-allocation for tax savings and financial planning. The platform features AI-powered automation for expense categorization and onboarding, and integrates with accounting tools (QuickBooks, Xero), payment processors (Stripe, Square, PayPal), and ecommerce platforms (Shopify, Etsy, WooCommerce). Over 250,000 independent businesses use the platform.

Differentiator

Problem solved

Functional benefit

Products and services

• Novo Business Checking Account Free business checking account with FDIC insurance up to $250,000, no monthly maintenance fees, no minimum balance requirements, free standard ACH transfers, free incoming wires, and free invoicing and budgeting tools. Serves as the foundation for all other Novo banking services.
• Novo Invoicing Free unlimited invoicing tool for creating and sending professional invoices, tracking whether invoices have been opened, and sending automatic payment reminders. Designed for independent businesses and service providers billing clients.
• Novo Business Debit Card Physical and virtual debit card with Mastercard rewards, minimal ATM fees, and cashback through LUX Rewards and Mastercard Easy Savings. Connected to the Novo business checking account for purchases and ATM access.
• Novo Business Credit Card Business credit card with no annual fee offering up to 2% cashback on every business purchase, backed by Mastercard. Customers with $5,000+ account balance earn 2% cashback; 1% with lower balance.
• Novo Reserves Budget reserves and auto-allocation feature allowing businesses to set aside money for taxes, profit targets, and operating expenses with support for up to 20 purpose-based categories. Functions as a savings and planning layer on top of the checking account.
• Novo Bookkeeping Automatic expense categorization and financial reporting with AI-powered suggestions for transaction categories (Software & Subscriptions, Advertising, Office Supplies, etc.). Provides tax reports, P&L statements, and cash flow reports accessible to small business owners.
• Novo Funding (Merchant Cash Advance) Merchant cash advance product providing fast access to cash for short-term gaps, new equipment, or business needs. Repayment period of 6 months, no hidden fees, available to existing customers active for at least 6 months. Delivered through subsidiary Novo Funding LLC.
• Novo Accept Payments Module for accepting payments by ACH, cards, and peer-to-peer apps through integrations with Stripe, Square, PayPal, and Amazon Seller. Provides real-time payment tracking and centralized visibility of revenue from multiple channels into the Novo account.
• Novo Pay Vendors & Employees Module for paying vendors, contractors, and employees via free standard ACH, Express ACH (with small fee), domestic and international wires, and mailed checks. Supports contractor and payroll workflows integrated with accounting tools.

Quantifiable outcome

• 250,000+ businesses served
• +2 more outcomes

Named customers7 records

Segments3 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration16 records

AI capability3 records

Feature3 records

Partnerships

Eight partnerships are on record, tiered core.

• StripecoreTechnology or IntegrationDeep integration allowing Novo customers to connect Stripe accounts, receive payouts directly to their Novo account, and track payments automatically.
• SquarecoreTechnology or IntegrationIntegration enabling Novo customers to connect Square for seamless payment tracking and automatic reconciliation.
• QuickBookscoreTechnology or IntegrationDirect sync with QuickBooks for automatic transaction categorization and bookkeeping automation.
• XerocoreTechnology or IntegrationIntegration with Xero accounting software for transaction sync and reconciliation.
• PayPalcoreTechnology or IntegrationPayPal integration allowing customers to receive payments directly to their Novo account.
• GustocoreTechnology or IntegrationPayroll integration allowing Novo customers to pay employees through Gusto.
• MastercardcoreTechnology or IntegrationMastercard partnership for debit and credit card issuance, with access to Mastercard Easy Savings perks and discounts on business tools.
• Middlesex Federal Savings, F.A.coreOthersBanking-as-a-Service partner providing FDIC insurance coverage up to $250,000. Novo is a fintech platform while Middlesex Federal Savings provides the underlying banking services.

Scale indicators6 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Mercury: Mercury provides digital business banking for startups and SMBs, similar to Novo's core offering. Both operate without their own banking license (using partner banks), offer free checking, integrate with tools like Stripe/QuickBooks, and target the SMB and startup segment with a PLG model.
• Bluevine: Bluevine offers online business checking accounts and small business lines of credit/credit cards to SMBs. It is directly comparable to Novo on banking, lending, and target customer segment, and similarly leverages a partner bank for deposit services.
• Relay Financial: Relay provides free business checking and savings accounts with multi-user permissions for SMBs. Like Novo, Relay focuses on small business banking, integrates with accounting platforms, and emphasizes free core banking with no monthly fees.
• Brex: Brex offers business banking, corporate cards, and spend management for startups and SMBs. While skewing larger in customer size, Brex overlaps with Novo in business checking, credit cards, and cashback rewards, and uses a similar fintech-on-bank-partner model.
• NorthOne: NorthOne provides digital business banking tailored to small businesses, with integrations to accounting and payment tools. It directly competes with Novo on the SMB checking, integration ecosystem, and mobile-first banking experience.
• Found: Found offers business banking with built-in bookkeeping and tax tools for self-employed individuals and small businesses. It is comparable to Novo on the freelancer/sole proprietor focus, integrated bookkeeping, and SMB cashback features.
• Lili: Lili provides banking and financial tools specifically for freelancers and self-employed individuals, with features like tax savings automation. It overlaps with Novo's primary SMB segment, free checking model, and savings/reserves functionality.

Emerging players

• Grasshopper Bank: Grasshopper Bank is a digital-first commercial bank serving startups, SMBs, and fintechs. While it holds its own banking charter (unlike Novo), it competes in the SMB digital banking segment and could serve as an alternative partner bank or competitor.

Broad incumbents

• Chase Business Banking: Chase Business offers checking, credit cards, and lending to SMBs as part of a large incumbent banking franchise. It competes with Novo across the SMB banking spectrum but as a full-service traditional bank with physical presence and broader product suite.
• Bank of America Business Banking: Bank of America provides business checking, credit cards, and lending products to SMBs. As an incumbent bank with extensive branch network, it competes with Novo on core SMB banking services but does not match its PLG model or integrated software ecosystem.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/novo_hq
• Facebookfacebook.com/Novo.coHQ
• LinkedInlinkedin.com/company/novo-hq

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries1 record

Funding overview

Funding rounds7 records

Investors18 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Novo