Global neo-banking platform Vance has raised $5.8 million (approx Rs 47 crore) in a seed round led by Hummingbird Ventures, with participation from Global Founders Capital, YCombinator, Soma Capital and seasoned angels such as Alan Rutledge and Gokul Rajaram.
Founded in 2022 by Parth Garg, a Stanford dropout, Vance is building an all-encompassing banking platform that will allow users to seamlessly manage separate accounts, exchange currencies, and invest in equities across markets.
Vance was born out of Parth’s personal experience, when he moved to India 8 months ago and faced challenges in getting a credit card despite having a credit history in the US and the UAE. He currently manages accounts in 4 countries. Realizing millions of others share his problems, he set out to find a solution.
“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. With an ever-increasing global population, a global bank is the need of the hour more than ever," said Parth Garg, Founder & CEO of Vance.
Unlike others, the startup said it allows users to transact using local rails in different countries. It aims to enable users to use a direct debit in the US while seamlessly leveraging India’s UPI rails through the same account.
With Vance, international travellers can spend like locals, migrants can send personal remittances to their home country at live rates, and cross-border freelancers can receive payments without the hefty commissions, it said.
Vance said it was a part of Y Combinator’s Winter 2022 batch and plans on going live in the UAE and UK by the end of 2022. By Q1 2023, The startup aims to launch its services in five additional countries.
It intends to use the raised capital to expand its 10-member team to 30 in the next six months and to create products like remittances, savings accounts, and investments.
Akshay Mehra, Asia Lead, Hummingbird Ventures, said, “In Vance, we've seen relentless execution, a culture of excellence, and a willingness to build a formidable financial technology company. Parth and team constantly question the status quo and are the right set of people to impact change for expats globally."
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