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

For over a decade, India has emerged as a top destination for global remittances. According to the central bank, incoming remittances have increased from $55.6 billion in 2010-11 to an estimated $118.7 billion in 2023-24, with projections reaching $160 billion by 2029.

This surge highlights the rising demand for digital banking solutions specifically designed for non-resident Indians (NRIs), including services from remittances to various investment opportunities in India.

Aspora (previously Vance) aims to build a customized financial ecosystem for the Indian diaspora, focusing on user experience. Though the company is developing a range of financial services, its primary focus remains on remittance solutions.

“There are many financial products available for NRIs, but many users remain unaware of them due to the lack of seamless digital experiences. They often use the same banking apps as locals, which makes it challenging to find products that meet their unique needs,” stated Garg.

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

This significant growth has attracted the attention of investors. In December, the company revealed it had secured $35 million in Series A funding—initially unreported—led by Sequoia, with contributions from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital, valuing the company at $150 million. In the following months, transaction volume tripled, prompting further investments.

Recently, the firm announced it had 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 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 on a flat fee model for transfers, offering competitive exchange rates, which it refers to as the “Google rate” in response to common currency conversion inquiries, although these rates may not reflect real-time values.

The startup is set to enter the U.S. market next month, one of the largest sources of remittance flows to India, and has plans to move into Canada, Singapore, and Australia by Q4 this year.

Garg, who grew up in the UAE, noted that remittances are just the beginning, as the company aims to roll out additional financial tools for NRIs.

“We view remittances as an entry point to offer a comprehensive range of financial solutions that the diaspora requires, including banking, investing, insurance, lending in their home country, and ways to assist their parents,” he shared with TechCrunch.

Garg emphasized that a significant portion of the funds NRIs send home is aimed at wealth generation rather than solely supporting family, with 80% of users transferring money into their own accounts in India.

In the upcoming months, the company plans to unveil several new services. This month, it will launch a bill payment platform for regular expenses such as rent and utilities. Next month, it will introduce fixed deposit accounts for NRIs to hold funds in foreign currencies. By year-end, a streamlined banking account designed for NRIs is expected, simplifying a traditionally cumbersome process reliant on family accounts.

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

While the company faces competition from international firms like Remittly and Wise, it also competes with domestic players such as Abound, which has emerged from Times Internet.

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

“The speed of execution is essential for early-stage success,” she told TechCrunch. “Aspora operates efficiently while strategically building one corridor at a time, which is a crucial element in the financial services sector.”