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

Over the past decade, India has emerged as a key player in the global remittance landscape. As reported by the central bank, incoming remittances surged from $55.6 billion in 2010-11 to an estimated $118.7 billion in 2023-24, with predictions suggesting they could hit $160 billion by 2029.

This trend highlights a growing need for digital banking solutions specifically designed for non-resident Indians (NRIs), which include services for remittances and various investment opportunities in India.

Aspora (formerly Vance) aims to create a tailored financial ecosystem for the Indian diaspora, focusing on user satisfaction. As it prepares to launch a comprehensive suite of financial services, the company is primarily concentrating on remittance solutions.

“While many financial products are available for NRIs, a lack of seamless digital experiences has left users unaware of their options. They often rely on the same banking apps as locals, complicating their search for services tailored to their specific needs,” Garg explained.

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

This impressive growth has captured the attention of investors. In December, the company revealed it secured $35 million in Series A funding, previously undisclosed, led by Sequoia, with contributions from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, raising the company’s valuation to $150 million. In the subsequent months, transaction volumes tripled, attracting further investments.

Recently, the company announced the successful closure 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 valued the startup at $500 million, bringing total equity funding to over $99 million.

After rebranding from Pipe.com for India, the firm launched 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 model for transfers while offering competitive exchange rates, referred to as the “Google rate,” even though these rates may not always reflect real-time values.

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

Garg, who spent part of his childhood in the UAE, noted that remittances are just the beginning, as the company intends to introduce more financial tools aimed at NRIs.

“We see remittances as a gateway to delivering a comprehensive suite of financial solutions essential for the diaspora, including banking, investments, insurance, lending, and parental support,” he shared with TechCrunch.

Garg emphasized that a considerable portion of the funds NRIs send back home is intended for wealth building rather than solely for 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 recurring expenses like rent and utilities. Next month, fixed deposit accounts for NRIs wishing to hold funds in foreign currencies will be introduced. By the end of the year, a streamlined banking account specifically for NRIs is anticipated, designed to simplify a traditionally complex process concerning family accounts.

Beyond banking services, the startup is developing a product to assist NRIs in supporting their parents back home, covering routine check-ups, emergency medical care, and various concierge services.

While competing with international players like Remittly and Wise, the company also faces domestic rivals like Abound, which has emerged from Times Internet.

Luciana Lixandru from Sequoia expressed confidence in Aspora’s rapid execution and specialized offerings, which may provide them with a competitive edge.

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