Bengaluru-based cross-border neo banking platform Vance has raised $5.8 Mn 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 and go live in the UAE and the UK by December 2022.
The business intends to launch in five additional countries by the first quarter of 2023 and expand its 10-person team to 30 in the following six months while developing products such as remittances, savings accounts, and investments.
Vance, founded in 2021 by Stanford dropout Parth Garg, began as a recurring revenue-based finance platform before pivoting to a cross-border neo banking platform.
It was a member of the Y Combinator Winter 2022 batch, posing as pipe.com for India. Vance would offer entrepreneurs upfront non-dilutive cash based on their recurring/subscription revenues.
Garg’s personal experience with cross-border banking challenges prompted the business to switch eight months later.
Vance is now developing a banking platform that will enable customers to manage several bank accounts, trade currencies, and eventually participate in global shares.
“Banking and payments have come leaps and bounds over the last 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 let users to transact utilising the country’s local payment channels. That example, via the same app, a user would be able to use direct debit in the United States as well as UPI in India. The idea is to create a “borderless banking account,” and the business is presently encouraging people to join the product waitlist. The business has over 1,000 individuals on its queue as of today (3rd Oct).