Neobank firm Vance raises $5.8M in Seed funding led by Hummingbird Ventures
- ByStartupStory | October 3, 2022
Vance, an international neo-banking firm, has raised $5.8 million which is about Rs. 46.8 crores in seed round of funding led by Hummingbird Ventures.
The fintech platform said that experienced angel investors including Alan Rutledge and Gokul Rajaram, as well as Global Founders Capital, YCombinator, and Soma Capital, participated in the round.
By December 2022, the Bengaluru-based company hopes to launch operations in the United Arab Emirates (UAE) and the UK after developing its international banking vertical with the help of funding. In the next six months, the firm intends to expand its workforce from 10 to 30 people and penetrate five more countries. Additionally, it will concentrate on developing goods including investing, savings accounts, and remittances.
Parth Garg, a Stanford dropout who founded Vance in 2021, originally intended it to be a recurring revenue-based finance platform before changing its direction to become a cross-border neo-banking platform. Vance was a member of the Winter 2022 batch of YCombinator.
“Banking and payments have advanced significantly during the past ten years, yet we still use antiquated technologies for cross-border transactions. It’s time to completely rethink global banking. A worldwide bank is urgently needed because of the growing world population, according to Garg, founder and CEO of Vance.
Garg’s own struggle to obtain a credit card after moving to India eight months ago, despite having a good credit history in the US and the UAE, was the inspiration for Vance. He presently oversees accounts in 4 different nations.
According to the company, it sees a day when having accounts in numerous countries will not be necessary in order to participate financially in an ecosystem. It intends to create a borderless banking account that makes it possible to use financial services in previously unattainable areas.
“In Vance, we’ve observed a propensity to establish a business in financial technology. Parth and his team challenge the status quo and are the ideal group to bring about change for expats everywhere, according to Akshay Mehra, Asia lead for Hummingbird Ventures.
Early-stage fintech companies that deal with cross-border payments have been drawing a lot of venture capital funding, even as established companies like Paytm and Razorpay and international digital behemoths like Google look to further tap into the growing opportunity.
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