Vance, a fintech startup, raises $5.8 million to facilitate cross-border neo-banking services
Bengaluru-based cross-border neo-banking platform Vance has raised $5.8 million in a seed round led by Hummingbird Ventures. The round saw participation from Global Founders Capital, Y Combinator, Soma Capital and angel investors Alan Rutledge and Gokul Rajaram.
The fintech startup plans to use the funds to develop its international banking business and go live in the UAE and UK by December 2022.
The business intends to launch in five more countries by the first quarter of 2023 and expand its 10-person team to 30 over the next six months as it develops products such as money transfers, savings accounts and investments.
Vance, founded in 2021 by Stanford dropout Parth Garg, began as a recurring revenue financial platform before transitioning into a cross-border neo-banking platform.
It was a member of the Y Combinator Winter 2022 group, and billed itself as pipe.com for India. Vance will offer founders upfront non-dilutive cash based on their recurring/subscription revenue.
Garg’s personal experience with cross-border banking challenges prompted the business to switch eight months later.
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Vance is now developing a banking platform that will enable customers to manage multiple bank accounts, trade currencies and ultimately participate in global equities.
“Banking and payments have come a long way over the past decade, but when it comes to international transactions, we still run on archaic systems. It is time to rethink global banking from the ground up,” stated Garg while talking about the need for a “global neobank”.
Unlike multi-currency wallets, a Vance account will allow users to transact using their country’s local payment channels. That example, via the same app, a user will be able to use Direct Debit in the US as well as UPI in India. The idea is to create a “borderless bank account” and the business is currently encouraging people to join its product waiting list. The business has over 1,000 people in the queue as of today (October 3).
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