A burgeoning fintech startup, Abound, has successfully secured $14 million in its inaugural external funding round. This investment will fuel its mission to cater to a growing demographic of Indian expatriates residing in the United States. With remittance flows to India on the rise, reaching $129.1 billion in 2024 as reported by the World Bank, Abound is strategically positioned to capitalize on this trend through its innovative mobile application. The app not only facilitates seamless money transfers but also offers unique rewards and cashback options.
The company’s vision extends beyond basic financial transactions, aiming to provide high-yield savings, investment opportunities focused on India, and cross-border credit solutions. Backed by strategic investors including NEAR Foundation and Circle Ventures, Abound plans to leverage this capital infusion to enhance its technological infrastructure and broaden its service offerings. Despite stiff competition from established players like Western Union and newer entrants such as Wise, Abound differentiates itself with competitive exchange rates and tailored incentives.
Pioneering Financial Solutions for NRIs
Abound's primary objective is to address the unmet needs of affluent Indian expatriates in the U.S., who often find themselves underserved by traditional banking systems. By integrating competitive exchange rates with a robust rewards program, the platform effectively reduces customer acquisition costs while enhancing user satisfaction. Since its inception, Abound has processed over $150 million in remittances, serving more than half a million active users monthly, with a remarkable 50% month-over-month revenue growth since launch.
This financial technology marvel was incubated within the tech division of The Times of India Group, initially known as Times Club. Under the leadership of CEO Nishkaam Mehta, formerly of Hulu, Abound has swiftly carved out a niche for itself in the crowded remittance market. The company's success stems from its ability to seamlessly integrate financial services with lifestyle perks, such as live sports streaming and exclusive discounts at popular Indian grocery chains. Furthermore, the platform generates additional revenue streams through advertisements and foreign exchange spreads, ensuring sustainable growth and profitability.
Expanding Horizons: Strategic Growth Plans
Beyond its current achievements, Abound is poised to expand its operations into international markets, including Canada, Singapore, and the UAE, which boast significant populations of non-resident Indians (NRIs). However, the immediate focus remains firmly on solidifying its presence in the U.S. market before venturing abroad. To achieve this, the company intends to augment its workforce and establish a dedicated executive team in the U.S., thereby enhancing local market insights and operational efficiency.
The seed funding round, led by NEAR Foundation, underscores the confidence of investors in Abound's potential to revolutionize the remittance landscape. Unlike conventional banks that overlook the specific financial needs of NRIs, Abound fills this critical gap by offering bespoke solutions. Supported by Times Internet, which leverages its extensive network of online visitors outside India to attract new users, Abound continues to refine its platform. Through continuous innovation and strategic partnerships, the company aims to maintain its edge in an increasingly competitive industry, ultimately transforming how NRIs manage their finances globally.