India has been one of the top recipients of remittances in the world for more than a decade. Inward remittances jumped from $55.6 billion in 2010-11 to $118.7 billion in 2023-24, according to data from the country’s central bank. The bank projects that figure will reach $160 billion in 2029.
This means there is an increasing market for digitalized banking experiences for non-resident Indians(NRIs), ranging from remittances to investing in different assets back home.
Aspora (formerly Vance) is trying to build a verticalized financial experience for the Indian diaspora by keeping convenience at the center. While a lot of financial products are in its future roadmap, the company currently focuses largely on remittances.
“While multiple financial products for non-resident Indians exist, they don’t know about them because there is no digital journey for them. They possibly use the same banking app as residents, which makes it harder for them to discover products catered towards them,” Garg said.
In the last year, the company has grown the volume of remittances by 6x — from $400 million to $2 billion in yearly volume processed.
With this growth, the company has attracted a lot of investor interest. It raised $35 million in Series A funding last December — which was previously unreported — led by Sequoia with participation from Greylock, Y Combinator, Hummingbird Ventures, and Global Founders Capital. The round pegged the company’s valuation at $150 million. In the four months following, the company tripled its transaction volume, prompting investors to put in more money.
The company announced today it has raised $50 million in Series B funding, co-led by Sequoia and Greylock, with Hummingbird, Quantum Light Ventures, and Y Combinator also contributing to the round. The startup said this round values the company at $500 million. The startup has raised over $99 million in funding to date.
After pivoting from being Pipe.com for India, the company started by offering remittance for NRIs in the U.K. in 2023 and has expanded its presence in other markets, including Europe and the United Arab Emirates. It charges a flat fee for money transfer and offers a competitive rate. Now it also allows customers to invest in mutual funds in India. The startup markets its exchange rates as “Google rate” as customers often search for currency conversion rates, even though they may not reflect live rates.
The startup is also set to launch in the U.S., one of the biggest remittance corridors to India, next month. Plus, it plans to open up shop in Canada, Singapore, and Australia by the fourth quarter of this year.
Garg, who grew up in the UAE, said that remittances are just the start, and the company wants to build out more financial tools for NRIs.
“We want to use remittances as a wedge and build all the financial solutions that the diaspora needs, including banking, investing, insurance, lending in the home country, and products that help them take care of their parents,” he told News.
He added that a large chunk of money that NRIs send home is for wealth creation rather than family sustenance. The startup said that 80% of its users are sending money to their own accounts back home.
In the next few months, the company is launching a few products to offer more services. This month, it plans to launch a bill payment platform to let users pay for services like rent and utilities. Next month, it plans to launch fixed deposit accounts for non-resident Indians that allow them to park money in foreign currency. By the end of the year, it plans to launch a full-stack banking account for NRIs that typically takes days for users to open. While these accounts can help the diaspora maintain their tax status in India, a lot of people use a family member’s account because of the cumbersome process, and Aspora wants to simplify this.
Apart from banking, the company also plans to launch a product that would help NRIs take care of their parents back home by offering regular medical checkups, emergency care coverage, and concierge services for other assistance.
Besides global competitors like Remittly and Wise, the company also has India-based rivals like Abound, which was spun off from Times Internet.
Sequoia’s Luciana Lixandru is confident that Aspora’s execution speed and verticalized solution will give it an edge.
“Speed of execution, for me, is one of the main indicators in the early days of the future success of a company,” she told News over a call. “Aspora moves fast, but it is also very deliberate in building corridor by corridor, which is very important in financial services.”
