Aspora Raises $50M from Sequoia to Create Banking and Remittance Solutions for the Indian Diaspora

For over a decade, India has consistently been one of the top nations receiving remittances globally. As reported by the country’s central bank, inward remittances have soared from $55.6 billion in 2010-11 to $118.7 billion in 2023-24, with forecasts predicting a rise to $160 billion by 2029.

This upward trend highlights a growing demand for digital banking solutions for non-resident Indians (NRIs), encompassing services ranging from remittances to various investment opportunities back home.

Aspora (formerly known as Vance) aims to establish a customized financial ecosystem for the Indian diaspora, with a focus on convenience. While many financial products are planned for the future, the company is currently centered on remittance services.

“A variety of financial products are available for NRIs, but a lack of awareness persists due to an absence of a user-friendly digital experience. Many use the same banking apps as locals, making it difficult to discover products tailored specifically to their needs,” explained Garg.

In the last year, the company has expanded its remittance volume sixfold—from $400 million to $2 billion annually.

This impressive growth has attracted considerable investor interest. Last December, the company secured $35 million in Series A funding—previously unreported—spearheaded by Sequoia, with contributions from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, valuing the company at $150 million. In the ensuing months, the company tripled its transaction volume, prompting investors to inject additional capital.

Today, the company revealed that it has raised $50 million in Series B funding, co-led by Sequoia and Greylock, with extra backing from Hummingbird, Quantum Light Ventures, and Y Combinator. This funding round values the company at $500 million, raising the total funding to over $99 million.

After transitioning from its earlier identity as Pipe.com for India, the company began offering remittance services for NRIs in the U.K. in 2023 and has since expanded to other areas, including Europe and the UAE. It utilizes a flat fee structure for money transfers along with a competitive exchange rate; the startup refers to its rates as the “Google rate” to align with frequent currency conversion queries, although these may not represent real-time values.

The startup is also gearing up for a launch in the U.S.—one of the largest remittance corridors to India—next month, with plans to enter Canada, Singapore, and Australia by Q4 of this year.

Garg, who grew up in the UAE, stressed that remittances are merely the beginning, as the company intends to create more financial tools catered to NRIs.

“We aim to utilize remittances as a gateway and provide all the financial solutions the diaspora requires, including banking, investing, insurance, lending in their homeland, and options to support their parents,” he shared with TechCrunch.

Garg pointed out that a substantial portion of the money NRIs send back home is aimed at wealth accumulation rather than just familial support, with 80% of users directing funds to their personal accounts in India.

In the upcoming months, the company plans to roll out several new services. This month, it will introduce a bill payment platform for expenses like rent and utilities. Next month, it plans to offer fixed deposit accounts for NRIs to hold funds in foreign currency. By the end of the year, a comprehensive banking account for NRIs—typically a process that takes days to open—is expected, streamlining a previously tedious experience that often compels users to rely on family accounts.

In addition to banking, the startup is developing a product aimed at helping NRIs support their parents back home through regular medical checkups, emergency care coverage, and various concierge services.

Competing with global companies such as Remittly and Wise, the firm also faces competition from India-based players like Abound, a spinoff from Times Internet.

Luciana Lixandru from Sequoia is optimistic about Aspora’s swift execution and focused solutions, which could offer a competitive edge.

“The speed of execution is a critical determinant of potential success in the early stages of a company,” she noted to TechCrunch. “Aspora operates efficiently while being strategic in its method of building one corridor at a time, which is essential in financial services.”