Aspora Receives $50M Investment from Sequoia to Enhance Banking and Remittance Services for the Indian Diaspora

For more than a decade, India has maintained its position as one of the top countries for global remittances. The country’s central bank reports that incoming remittances have increased from $55.6 billion in 2010-11 to a projected $118.7 billion in 2023-24, with expectations reaching $160 billion by 2029.

This growth highlights an escalating need for digital banking services tailored to non-resident Indians (NRIs), encompassing areas from remittances to diverse investment opportunities in India.

Aspora (formerly Vance) aspires to establish a customized financial ecosystem for the Indian diaspora, focusing on user convenience. While the company has various financial offerings in development, its primary emphasis remains on remittance services.

“There are several financial products available for NRIs, yet many remain unaware due to a lack of a smooth digital experience. Many users rely on the same banking apps as locals, complicating the discovery of products tailored for their unique needs,” Garg commented.

In the past year, the firm has experienced an impressive sixfold increase in remittance volume—from $400 million to $2 billion annually.

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

Recently, the company announced it has 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 the total equity funding to over $99 million.

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 areas like Europe and the UAE. It utilizes a flat fee model for transfers coupled with a competitive exchange rate, branding its rates as the “Google rate” in response to common currency conversion inquiries, although these rates may not reflect real-time values.

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

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

“We see remittances as a gateway to offer comprehensive financial solutions that the diaspora needs, including banking, investing, insurance, lending in their home country, and ways to support their parents,” he shared with TechCrunch.

Garg noted that a large portion of the funds NRIs send back home is aimed at wealth generation rather than just familial support, with 80% of users directing 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 consistent expenses like rent and utilities. Next month, it intends to offer fixed deposit accounts for NRIs to keep funds in foreign currencies. By year-end, a streamlined banking account for NRIs is expected, simplifying a process that has historically been cumbersome and reliant on family accounts.

Beyond banking services, the startup is developing a product to assist NRIs in supporting their parents at home, providing regular medical checkups, emergency care coverage, and various concierge services.

While facing competition from international companies like Remittly and Wise, the firm also competes against India-based entities like Abound, which spun off from Times Internet.

Luciana Lixandru from Sequoia expressed a positive outlook on Aspora’s rapid execution and targeted solutions, which may provide them with a competitive edge.

“The pace of execution is crucial for early-stage success,” she remarked to TechCrunch. “Aspora operates efficiently while strategically building one corridor at a time, a key aspect in financial services.”