American small business banking platform Novo has announced a $90m Series B funding round, which values it at $700m.

The round was led by Stripes with participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup.

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Novo will use the new funding to develop modern lending capabilities, integration and proprietary offering aimed at enabling clients to quickly send and receive money.

These upgrades will add to the ones Novo announced last year that includes a marketplace, invoicing capabilities, cash flow insights and the ability to add up to five reserves to account.

Stripes partner Saagar Kulkarni said: “What sets Novo apart is a fundamentally different approach to helping small businesses succeed. Instead of opting for incremental change, Novo built its banking platform from the ground up so that it could not just deliver a great digital banking experience, but actually deliver de novo financial products to a customer base that is yearning for them.”

In June 2021, a $40.7m Series A funding was announced by Novo.

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Launched in 2018, Novo, which currently caters to over 150,000 small business customers, claims to have processed over $5bn in transactions since its inception.

Novo CEO and co-founder Michel Rangel said: “With this additional funding, Novo will take a huge leap forward in improving cash flow for small businesses. In the coming months and years, our small business customers will be able to access their funds faster than they ever thought possible.”