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

For over a decade, India has positioned itself as a major center for global remittances. According to the central bank, incoming remittances have increased from $55.6 billion in 2010-11 to a projected $118.7 billion in 2023-24, with expectations of reaching $160 billion by 2029.

This upward trend highlights a growing demand for digital banking solutions designed for non-resident Indians (NRIs), covering services from remittances to various investment options within India.

Aspora (previously Vance) aims to build a customized financial ecosystem for the Indian diaspora, emphasizing user experience. While the company is in the process of launching a comprehensive range of financial services, its primary focus is on remittance solutions.

“There are numerous financial products available for NRIs, but many users remain unaware due to a lack of seamless digital experiences. They tend to use the same banking applications as locals, making it challenging to find offerings that meet their unique needs,” Garg mentioned.

Over the past year, the company has seen an impressive sixfold increase in remittance volume—from $400 million to $2 billion annually.

This significant growth has attracted investor interest. In December, the company revealed it had raised $35 million in Series A funding—previously undisclosed—led by Sequoia, with contributions from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, bringing the company’s valuation to $150 million. In the following months, transaction volume tripled, resulting in further investments.

Recently, the firm announced that it completed 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, raising total equity funding to over $99 million.

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 a flat fee model for transfers while offering competitive exchange rates, referred to as the “Google rate,” despite these rates not always reflecting real-time values.

The startup plans to enter the U.S. market next month, which is one of the largest sources of remittance flows to India, and also aims to expand into Canada, Singapore, and Australia by the fourth quarter of this year.

Garg, who spent his early years in the UAE, stated that remittances are merely the beginning, as the company looks to roll out additional financial tools for NRIs.

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

Garg emphasized that a significant portion of the funds NRIs send 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 upcoming months, the company plans to introduce several new services. This month, it will launch a bill payment platform for routine expenses like rent and utilities. Next month, it will provide fixed deposit accounts for NRIs wishing to hold funds in foreign currencies. By the end of the year, a simplified banking account specifically for NRIs is expected, aimed at easing a traditionally complex process tied to family accounts.

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

While the company faces competition from international firms like Remittly and Wise, it also contends with domestic challengers, including Abound, which has emerged from Times Internet.

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

“Speed of execution is vital for success in the early stages,” she remarked to TechCrunch. “Aspora functions efficiently while strategically developing one corridor at a time, which is crucial in financial services.”