Aspora Raises $50 Million from Sequoia to Enhance Banking and Remittance Solutions for the Indian Diaspora

For over a decade, India has emerged as a key player in global remittances. The central bank reports that incoming remittances have grown from $55.6 billion in 2010-11 to a projected $118.7 billion in 2023-24, with estimates indicating they could reach $160 billion by 2029.

This trend highlights a rising need for digital banking solutions specifically designed for non-resident Indians (NRIs), covering services from remittances to a variety of investment avenues in India.

Aspora (previously Vance) aims to build a customized financial ecosystem for the Indian diaspora, prioritizing user experience. While preparing to launch an extensive range of financial services, the company’s main focus is on remittance offerings.

“Many financial products for NRIs exist, but users often remain unaware due to a lack of seamless digital experiences. They frequently rely on the same banking apps as locals, which makes it challenging to find services tailored to their specific needs,” Garg mentioned.

Over the last year, the company has witnessed an astonishing sixfold increase in remittance volume—from $400 million to $2 billion annually.

This impressive growth has attracted the attention of investors. In December, the company announced it had secured $35 million in Series A funding—not previously disclosed—led by Sequoia, with contributions from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, elevating the company’s valuation to $150 million. In the subsequent months, transaction volume tripled, prompting further investments.

Recently, the firm revealed the completion of a $50 million Series B funding round, co-led by Sequoia and Greylock, with additional backing from Hummingbird, Quantum Light Ventures, and Y Combinator. This funding round values the startup at $500 million, bringing total equity funding to over $99 million.

Following its rebranding from Pipe.com for India, the company introduced remittance services for NRIs in the U.K. in 2023 and has since expanded into Europe and the UAE. It operates on a flat fee structure for transfers while offering competitive exchange rates, known as the “Google rate,” although these rates may not consistently reflect real-time values.

The startup is set to enter the U.S. market next month—a major source of remittance flows to India—and also plans to expand into Canada, Singapore, and Australia by the fourth quarter of this year.

Garg, who spent his early years in the UAE, noted that remittances are merely the beginning, as the company aims to introduce additional financial tools for NRIs.

“We view remittances as a gateway to provide a comprehensive suite of financial solutions that the diaspora requires, including banking, investment, insurance, lending, and ways to assist their parents,” he shared with TechCrunch.

Garg emphasized that a substantial portion of the funds NRIs send back home is intended for wealth accumulation rather than just family support, with 80% of users transferring money to their own accounts in India.

In the coming months, the company plans to roll out several new services. This month, it will launch a bill payment platform for regular expenses such as rent and utilities. Next month, fixed deposit accounts for NRIs wanting to hold funds in foreign currencies will become available. By the end of the year, a streamlined banking account specifically for NRIs is expected, designed to simplify a traditionally complex process regarding family accounts.

In addition to banking services, the startup is developing a product to help NRIs support their parents back home, including coverage for routine check-ups, emergency medical care, and various concierge services.

While the company competes with international players like Remittly and Wise, it also faces domestic challengers such as Abound, which has emerged from Times Internet.

Luciana Lixandru from Sequoia expressed confidence in Aspora’s swift execution and specialized solutions, which may provide them with a competitive advantage.

“Execution speed is essential for success in the early stages,” she remarked to TechCrunch. “Aspora operates efficiently while strategically developing one corridor at a time, which is crucial in financial services.”