Contents
Abound Raises $14 Million to Enhance Remittance Solutions for Indian Expats in the U.S.
In a significant development for the Indian expatriate community in the United States, remittance app Abound has secured $14 million in its first external funding round, aiming to offer tailored financial solutions for Indian immigrants as remittance flows to India continue to rise.
Lead: Abound, a remittance application launched by Times Internet in 2023, has made headlines by securing $14 million in a fresh funding round to better serve the booming Indian expat community in the United States. With Indian remittances soaring to a record $129.1 billion in 2024, the company aims to tap into this growth by providing innovative financial services specifically designed for the Indian diaspora. The investment, led by NEAR Foundation and supported by various investors, will be utilized to enhance the app’s offerings and improve its technology infrastructure.
The Growing Demand for Remittance Services
– According to a World Bank report, India’s remittance inflows for 2024 reached an impressive $129.1 billion, marking a substantial 14.3% share of the global remittance market.
– Abound is strategically positioned to capitalize on this upward trend.
Nishkaam Mehta, CEO of Abound, highlights the unique financial needs of Indian expatriates:
– “Indians are among the largest immigrant groups in the U.S. The average Indian household income is about $150,000, indicating a wealthy, yet underserved demographic.”
– Abound’s mission is to fill this gap by offering services that cater specifically to Indian expats.
Innovative Features of Abound
Launched initially as Times Club, Abound provides users with a wide array of services that include:
– **Seamless Money Transfers:** Users can send money to India easily and quickly.
– **Rewards and Cashback:** The app offers cashback on various services, including grocery shopping and streaming sports.
– **High-Yield Savings and Investments:** Upcoming features will allow users to access high-yield savings options and India-focused investments.
Mehta envisions Abound as a “super app” that would integrate various financial services, even inviting traditional banks to be part of the platform:
– “We’re creating a model where banks can also play a role in serving the Indian diaspora,” said Mehta in an interview.
Impressive Growth Metrics
Since its inception, Abound has shown promising growth:
– The platform has processed over $150 million in remittances from more than 500,000 monthly users.
– The startup’s revenue has surged by 50% month-over-month since its launch, demonstrating strong demand for its services.
– Abound’s monthly remittance volume has risen by 15%, with estimates of processing $110 million to $120 million in transactions over the past year.
Abound utilizes several revenue streams to support its growth:
– **Ad Revenue:** The app generates income through rewards and advertisement partnerships.
– **Foreign Exchange Margin:** Abound also benefits from a competitive foreign exchange spread on remittances.
Mehta explains the advantage of integrating rewards into their business model:
– “We don’t face the same customer acquisition costs as traditional remittance companies, allowing us to compete effectively.”
The recent funding round was entirely equity-based and led by NEAR Foundation, with participation from:
– Circle Ventures
– Times Internet
– Other noteworthy investors
This capital infusion will help Abound:
– Expand its service offerings.
– Enhance its technology and infrastructure.
– Capture a larger share of the burgeoning remittance market.
Gajwani, Vice Chairman of Times Internet, observes the gap in traditional banking services tailored for Non-Resident Indians (NRIs):
– “There’s a significant opportunity in addressing the financial requirements of NRIs that traditional banks overlook,” he commented.
The foreign remittance platform market is crowded, with established players like:
– Western Union
– PayPal
– MoneyGram
– And newer entrants such as Remitly and Wise
However, Abound stands out by:
– Offering highly competitive exchange rates.
– Providing rewards and cashback at around 5,000 Indian grocery stores.
– Facilitating access to cricket streaming, which is immensely popular in India.
Abound currently employs a dedicated team of 40, primarily based in India, and has plans to:
– Increase its workforce and develop an executive team in the United States.
– Explore market opportunities in Canada, Singapore, and the UAE, which have significant Indian expatriate populations.
Mehta emphasizes that while future expansion is on the horizon, the immediate focus remains on solidifying Abound’s presence in the U.S. market:
– “Consolidating our position in the U.S. will enable us to lay the groundwork for our international foray,” he stated.
Conclusion: The funding round marks a pivotal moment for Abound as it seeks to create a unique financial ecosystem for Indian expats in the U.S. With significant growth in remittance flows and the unique financial preferences of Indian immigrants, Abound is strategically positioned to become a leading player in the remittance market. As the company plans for its future expansion, it will be interesting to observe how its innovative approaches to remittances reshape the financial landscape for non-resident Indians.
Keywords: Abound, remittance app, Indian expatriates, funding, Times Internet, NEAR Foundation, money transfer, financial services, NRIs, foreign remittances, technology infrastructure.
Hashtags: #Abound #IndianExpats #Remittance #TimesInternet #FundingRound #NRI #Fintech #MoneyTransfer #StartupGrowth #InvestInInnovation
Source link
