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. Central bank data reveals that incoming remittances surged from $55.6 billion in 2010-11 to nearly $118.7 billion by 2023-24, with predictions indicating they might hit $160 billion by 2029.

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

Aspora (formerly Vance) is committed to creating a tailored financial ecosystem for the Indian diaspora, focusing on enhancing user experience. As the company prepares to launch an extensive range of financial services, its primary aim is to advance remittance solutions.

“While numerous financial products exist for NRIs, the lack of seamless digital experiences has left many in the dark about their options. As a result, they frequently utilize the same banking apps as local residents, complicating their quest for services that cater to their specific needs,” stated Garg.

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

This remarkable growth has attracted the attention of investors. In December, the firm disclosed it had secured $35 million in a Series A funding round, led by Sequoia, with participation from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, raising its valuation to $150 million. In the following months, transaction volumes tripled, drawing further investment.

Recently, the company announced the successful close 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 propelled the startup’s valuation to $500 million, accumulating over $99 million in total equity funding.

After rebranding from Pipe.com for India, the company 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 structure for transfers, offering competitive exchange rates known as the “Google rate,” though these rates may not always reflect real-time values.

The startup is set to enter the U.S. market next month—an essential channel for remittance flows to India—and plans to further extend its reach into Canada, Singapore, and Australia by the end of the year.

Garg, who spent part of his childhood in the UAE, emphasized that remittances are merely the beginning, as the company plans to introduce additional financial tools for NRIs.

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

Garg highlighted that a significant portion of the funds NRIs send back is intended for wealth creation rather than just supporting their families, 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, they will introduce a bill payment platform for recurring expenses like rent and utilities. Next month, fixed deposit accounts will be available for NRIs wishing to maintain funds in foreign currencies. By the year’s end, a streamlined banking account specifically designed for NRIs is expected, aimed at simplifying the traditionally complex process of managing family accounts.

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

In addition to competing with global players like Remittly and Wise, the company faces local competition, including Abound, which originated from Times Internet.

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

“The speed of execution is crucial for initial success,” she remarked to TechCrunch. “Aspora operates effectively while strategically expanding one market at a time, which is essential in the financial services sector.”