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 international remittance flows. The central bank reports that incoming remittances surged from $55.6 billion in 2010-11 to about $118.7 billion in 2023-24, with projections indicating they could hit $160 billion by 2029.

This increase highlights the growing need for digital banking solutions specifically designed for non-resident Indians (NRIs), which includes remittance services and various investment opportunities in India.

Aspora (previously known as Vance) is committed to creating a tailored financial ecosystem for the Indian diaspora, with a strong emphasis on user experience. As the company prepares to launch a comprehensive suite of financial services, its primary aim is to enhance remittance solutions.

“While numerous financial products are available for NRIs, the lack of seamless digital experiences has left many unaware of their choices. As a result, they often resort to the same banking applications as local residents, complicating their quest for services that cater to their specific needs,” Garg explained.

Last year, the company saw an impressive sixfold increase in remittance volume, rising from $400 million to $2 billion annually.

This remarkable growth has attracted investors’ attention. In December, the company revealed it had secured $35 million in an undisclosed Series A funding round 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 following months, transaction volumes tripled, drawing in further investments.

Recently, the company announced the successful completion of a $50 million Series B funding round co-led by Sequoia and Greylock, with additional support from Hummingbird, Quantum Light Ventures, and Y Combinator. This funding round has pushed the startup’s valuation to $500 million, accumulating over $99 million in total equity funding.

After rebranding from Pipe.com for India, the firm launched remittance services for NRIs in the U.K. in 2023 and has since expanded to Europe and the UAE. It operates on a flat fee basis for transfers while providing competitive exchange rates, referred to as the “Google rate,” although these rates may not always match real-time values.

The startup is set to enter the U.S. market next month—an essential hub for remittance flows to India—and plans to further 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 merely the beginning, as the company aims to introduce additional financial tools targeting NRIs.

“We see remittances as a pathway to a full suite of financial solutions vital for the diaspora, including banking, investments, insurance, lending, and services for parents,” he shared with TechCrunch.

Garg emphasized that a significant portion of the funds NRIs send home is intended for wealth creation 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 launch several new services. This month, it will introduce a bill payment platform for recurring expenses such as rent and utilities. Next month, fixed deposit accounts will be available for NRIs wishing to retain funds in foreign currencies. By year-end, a streamlined banking account specifically for NRIs is expected, designed to simplify the traditionally complex process of managing family accounts.

Beyond banking services, the startup is developing a product to assist NRIs in providing support for their parents in India, encompassing routine health check-ups, emergency medical care, and various concierge services.

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

Luciana Lixandru from Sequoia expressed confidence in Aspora’s swift execution and specialized offerings, which could provide a competitive edge.

“Speed of execution is crucial for success in the initial phases,” she noted to TechCrunch. “Aspora operates efficiently while strategically expanding one corridor at a time, which is essential in the financial services sector.”