India has been one of the top recipients of money transfers worldwide for over a decade. According to data from the country’s central bank, inward transfers increased from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. This figure of banking projects will reach $160 billion in 2029.
This means that there is an increasing market for digitalised banking experiences for non-resident Indians (NRIs) from remittances to investments in various assets in their homeland.
Aspora (formerly Vance) is trying to build the verticalized financial experience of the Indian diaspora by maintaining convenience at the centre. While many financial products are on the roadmap for the future, the company is currently focusing primarily on remittances.
“There are multiple financial products for non-resident Indians, but they don’t know about them as they don’t have a digital journey for them. They probably use the same banking app as residents, making it difficult for them to discover the products that are directed at them,” Garg said.
Last year, the company increased its remittance volume by six times. This increased from $400 million to $2 billion annually.
This growth has led to the company’s interest from many investors. It raised last December (previously unreported Series A funding) led by Sequoia with participation from Greylock, Y Combinator, Hummingbird Venture and global founder capital. The round fixed the company’s valuation at $150 million. Over the next four months, the company tripled its trading volume and urged investors to spend more money.
The company announced today that it has announced its financing for the Series B, co-led by Sequoia and Greylock. The startup said the round valued the company at $500 million. The startup has raised more than $99 million in funding so far.
After pivoting from Pipe.com in India, the company began offering remittances to NRI in the UK in 2023, expanding its presence in other markets, including Europe and the United Arab Emirates. We charge flat rates for remittances and provide competitive rates. Customers can also invest in mutual funds in India. Startups often search for currency conversion rates even when customers do not reflect live rates, so they sell exchange rates as “Google Rates.”
The startup is also expected to launch next month in the US, one of the biggest remittance corridors to India. Additionally, shops will be opened in Canada, Singapore and Australia by the fourth quarter of this year.
Gurg, who grew up in the United Arab Emirates, remittances are just the beginning and the company wants to build more financial tools for NRI.
“We want to use remittances as a wedge and build all the financial solutions that the diaspora needs, including banking, investments, insurance, lending in their home country, and products that help them care for their parents,” he told TechCrunch.
He added that the bulk of money Nris sends home is for the creation of wealth rather than for the family’s livelihood. The startup said 80% of users send money to their accounts to their homes.
Over the next few months, the company will launch several products to provide more services. This month, they plan to launch an invoice payment platform, where users will pay for services such as rent and utilities. Next month we plan to launch a non-resident Indian fixed deposit account that will allow you to park your money in foreign currency. By the end of the year, we plan to launch a full stack banking account for NRI, which usually takes several days for users to open. These accounts help the diaspora maintain tax status in India, but many people use family accounts for the tedious process, and Aspora wants to simplify this.
Apart from banking, the company is also planning to launch products that will help NRIs take care of their parents by providing regular health checks, emergency medical coverage and concierge services for other assistance.
In addition to global competitors such as remittances and Wise, the company also has Indian-based rivals, such as India.
Sequoia’s Luciana Lixandru believes Aspora’s speed of execution and verticalization solutions will have an advantage.
“For me, speed of execution is one of the early key indicators of the company’s future success,” she told TechCrunch over the phone. “Aspora moves fast, but it is very intentional in building corridors through corridors. This is very important in financial services.”