Brazilian fintech Noh receives seed funding in the amount of $3M for its kick-start

The company closed a seed round worth $3M and was led by Kindred Ventures fintech Noh Brazil’s most important untapped market, multi-player and shared finances, is being explored by the company. Brazil is one of the world’s top nations for making joint purchases. Noh is promising to automate expenses division, eliminating the stress of paying friends money and the hassle of sending cash for each individual bill. Noh’s ultimate goal is to become the country’s main payment method.

Noh was established in November 2021. In mid-March, the company will launch its first product, an application that functions as a shared digital purse. Users will be able to make payments by bank slip (or ‘boleto’), Pix (Brazil’s ubiquitous electronic payment system) or a prepaid Visa card issued by Noh.

Each user can create as many groups they wish after registering with Noh and opening an account. You can create groups for friends who share regular expenses like electricity bills, rent, and weekly football games, or you can make temporary purchases such as a birthday dinner or vacation. Users then transfer funds to the shared digital wallet, and set how much each person will pay for an expense or account – an even split between participants, 60/40, or any other percentage of their choice.

“In Brazil, sharing is a way of life. Our housing, food, Netflix and lottery tickets are all shared. We still depend on one person, with one bank account or card, to pay for these things. Noh brings people together in a single payment, giving them the convenience of paying a Boleto as a trio, or making a Pix payment as a group automatically”, Ana Zucato, CEO at Noh.

Kindred Ventures was the lead investor in the $3M seed round, which was owned by Kanyi Makubela and Steve Jang. Noh also welcomed contributions from Positive Ventures; Twitter co-founder Biz Stone and Frederick Blackford’s Future Positive fund; The Twenty Minute VC by Harry Stebbings; and Propel Venture Partners.

As part of Noh’s growth strategy, the company sought out a number of entrepreneurial angels with expertise in the local market, plus fintech experts behind multimillion-dollar startups. These include Patrick Sigrist (iFood) and André Penha (Quinto Andar), who are joined by Tom Blomfield (founder of Monzo), Pedro Condrade (founder of Neon), Ayo Omojola (Cash App), Dhaval Chadha (Justos) and Scott Belsky (founder of Behance).

CEO Ana Zucato’s leadership is unusual for Latin America, where less than 5% of fintechs have been founded by women. Prior to Noh, Zucato worked at Intuit (the world’s largest fintech), Truora and GuiaBolso. Felipe Cabral (ex-Quinto Andar) and Octavio Torra (ex-CTO of GuiaBolso) are her co-founders.

Noh’s app is free to download, and there is no charge for users to make transactions. As Noh functions as a payments solution, its revenue comes from the establishments’ interchange fees for each transaction.

Open Banking will play a key role in bringing Noh’s ambitious growth plans to life. In the future, Zucato intends to add extensive banking integrations, so that the amounts can be debited directly from the users’ bank accounts. The company was founded with a vision beyond the initial product. “Imagine that in every e-commerce, marketplace or delivery application you will be able to find a ‘Split Account’ button. This button will be powered by Noh,” says Zucato.

Kanyi Maqubela, managing partner at Kindred Ventures, adds: “The first era of financial technology required moving identity and money online. Software can now interact with the financial system. This unlocks two powerful levers: programmability (and social). Noh created a platform for both social and programmable currency in one. This is the future of how money will move, and they are on the bleeding edge of it.”

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