Aspora, a new fintech startup focused exclusively on the Indian diaspora, raised $50 million in Series B funding to help achieve their grand vision. Sequoia Capital and Greylock Partners jointly led this recent successful round. This most recent funding brings Aspora’s total fundraising to more than $99 million. That gives the company an amazing valuation of $500 million. Read our blog post explaining the deal valuation. The company was last valued at $150 million following its Series A funding round. In December 2022, it announced raising $35 million in that round.
Aspora envisions developing a one-stop-shop suite of banking and financial solutions designed specifically for Non-Resident Indians (NRIs). Aspora is currently working to launch a full-stack banking account by the end of this year. This digital-first service will help NRIs take better control of their financial lives even when they’re overseas. The firm additionally just lately introduced non-resident Indian fixed deposit accounts. They’re rolling out a new bill payment platform, designed to serve their customers’ unique needs.
Execution speed matters, according to Luciana Lixandru, a partner at Sequoia Capital. She argues it’s a better gauge for a company’s long-term viability during its nascent years.
With remittances making up a key pillar of India’s economy, Aspora has entered an opportune space to create a strong foothold in a highly-growing and valued market. The firm was more than a billion dollars in yearly remittance volume, showing an incredible six-time growth from $400 million. Interestingly, 80% of Aspora’s users are using it to send money back to their own India-based accounts. Meanwhile, inward remittances are surging. India’s remittance inflow is expected to reach $118.7 billion by 2023-24, up from $55.6 billion in 2010-11.
Following the recent capital injection, the fintech startup’s transaction volume exploded. It tripled within just four months – a reflection on the emerging demand for efficient remittance services by the diaspora. Aspora’s user-friendly platform allows customers to seamlessly transfer funds to loved ones abroad. It further provides you an option to invest in all mutual funds present in India.
Garg, Aspora’s co-founder explained, We are trying to use remittances as a starting point. They have ambitious plans to build other financial services for the diaspora – such as banking, investing, insurance and lending back home, and even products that can help parents.
While Aspora is currently primarily working to expand its services into more states in India, it has its eyes on opening its geographical reach. The firm intends to establish branches in Canada, Singapore, and Australia by Q4 of this year. Aspora is preparing to launch its services in the United States next month, targeting one of the largest remittance corridors to India.
When you see so many financial products aimed at NRIs, the majority of which still leave people ignorant, we see this lack of awareness continue due to the lack of personalized digital journeys. Garg emphasized this challenge: “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.”
Aspora’s kicking it full speed with their big plans. To fill that gap, it’s looking to create a seamless experience through its technology-driven platform specifically customized to meet cross-border financial needs of the Indian diaspora. Aspora has gained significant support from distinguished investors. Armed with a growth blueprint, it is all set to emerge as a dominant force in the fast evolving financial services firmament for NRIs.
