▼ Summary
– India has seen remittances grow from $55.6 billion in 2010-11 to $118.7 billion in 2023-24, with projections reaching $160 billion by 2029.
– Aspora (formerly Vance) focuses on digital financial services for NRIs, starting with remittances and planning to expand into banking, investing, and insurance.
– The company raised $35 million in Series A funding at a $150 million valuation and recently secured $50 million in Series B, valuing it at $500 million.
– Aspora is expanding globally, launching in the U.S. soon and planning entries into Canada, Singapore, and Australia by Q4 2024.
– The startup aims to simplify financial services for NRIs, offering bill payments, fixed deposits, and full-stack banking, along with parental care services like medical checkups.
India’s remittance market continues to surge, with projections indicating it will hit $160 billion by 2029. This growth has created a booming demand for specialized financial services tailored to non-resident Indians (NRIs), who often struggle with fragmented banking experiences. Aspora, a fintech startup formerly known as Vance, is capitalizing on this opportunity by offering a streamlined digital platform designed specifically for the Indian diaspora.
Unlike traditional banking apps that cater primarily to residents, Aspora focuses on simplifying financial transactions for NRIs, starting with remittances. The company has already seen remarkable traction, processing $2 billion in yearly remittance volume, a sixfold increase from the previous year. This rapid growth has drawn significant investor attention, including a $35 million Series A round led by Sequoia Capital late last year, valuing the startup at $150 million.
Now, Aspora has secured an additional $50 million in Series B funding, co-led by Sequoia and Greylock, with participation from Hummingbird Ventures, Quantum Light, and Y Combinator. The latest round values the company at $500 million, bringing its total funding to nearly $100 million. The fresh capital will fuel expansion into key markets like the U.S., Canada, Singapore, and Australia, while also broadening its product offerings beyond remittances.
Currently, Aspora operates in the U.K., Europe, and the UAE, charging a flat fee for money transfers while promoting competitive exchange rates as “Google rates.” The platform also enables NRIs to invest in Indian mutual funds, with plans to introduce fixed deposits, full-stack banking accounts, and bill payment services in the coming months.
Founder Garg, who grew up in the UAE, emphasizes that remittances are just the beginning. The company aims to build a comprehensive financial ecosystem for NRIs, including insurance, lending, and even concierge services for elderly parents back home. With 80% of users sending money to their own accounts, Aspora recognizes that wealth creation, not just family support, is a major driver of remittances.
While competitors like Remittly and Wise operate globally, and India-based players like Abound pose local challenges, Sequoia’s Luciana Lixandru believes Aspora’s focused approach and execution speed set it apart. “Building corridor by corridor is critical in financial services,” she noted, highlighting the startup’s deliberate yet rapid expansion strategy.
As Aspora prepares to launch in the U.S. next month, its vision extends far beyond transfers. By integrating banking, investments, and caregiving solutions, the startup is positioning itself as a one-stop financial hub for the Indian diaspora worldwide.
(Source: TechCrunch)
