The Indian diaspora has long been a significant contributor to the country’s economy through remittances, and recent trends indicate that this flow of money is only set to increase. With remittances soaring from $55.6 billion in 2010-11 to an impressive $118.7 billion in 2023-24, the potential for digital banking solutions tailored to non-resident Indians (NRIs) is immense. Projections suggest that this figure could reach $160 billion by 2029, highlighting a growing demand for innovative financial services.
Recognizing this opportunity, a new startup is on a mission to create a seamless financial ecosystem for the Indian diaspora. By prioritizing user convenience, the company aims to offer a range of services that cater specifically to the needs of NRIs, from remittances to investment opportunities in their home country.
Despite the existence of various financial products for NRIs, many remain unaware of their options due to a lack of tailored digital experiences. The startup’s founder emphasized that existing banking apps often do not cater to the unique needs of NRIs, making it challenging for them to discover relevant financial products.
In just one year, the startup has seen a remarkable increase in remittance volume, growing from $400 million to $2 billion annually. This impressive growth has attracted significant investor interest, leading to a successful $35 million Series A funding round last December, which was co-led by a prominent venture capital firm. This funding round valued the company at $150 million, and in the following months, the transaction volume tripled, prompting further investment.
Recently, the startup announced a substantial $50 million Series B funding round, co-led by the same venture capital firm, which has now valued the company at $500 million. To date, the startup has successfully raised over $99 million in total funding.
Initially focused on providing remittance services for NRIs in the U.K., the company has since expanded its reach to other markets, including Europe and the UAE. It offers a flat fee for money transfers and competitive exchange rates, which are marketed as the ‘Google rate’ to attract customers searching for currency conversion options.
Looking ahead, the startup plans to launch its services in the U.S., one of the largest remittance markets for India, next month, with further expansions planned for Canada, Singapore, and Australia by the end of the year.
The founder, who has personal experience as part of the diaspora, believes that remittances are just the beginning. The company aims to develop a comprehensive suite of financial tools for NRIs, including banking, investment, insurance, and lending solutions that cater to their specific needs.
Interestingly, a significant portion of the money sent home by NRIs is intended for wealth creation rather than just supporting family members. The startup reports that 80% of its users are transferring funds to their own accounts in India.
In the coming months, the company plans to introduce several new products, including a bill payment platform for services like rent and utilities, and fixed deposit accounts for NRIs to manage their funds in foreign currency. By the end of the year, they aim to launch a full-stack banking account designed specifically for NRIs, streamlining the account opening process that is often cumbersome.
Additionally, the startup is developing a service to assist NRIs in caring for their parents back home, offering regular medical checkups, emergency care coverage, and concierge services for various needs.
While facing competition from global players, the startup also contends with local rivals. However, industry experts believe that the company’s rapid execution and focused approach will provide a competitive advantage in the financial services sector.
As the founder noted, the speed of execution is crucial for success in the early stages of a startup, and the company is committed to building its services strategically, market by market, to ensure a strong foundation in the financial landscape.