Circle and Near Invest $14M in Indian Remittances App Abound

Abound, a financial super-app designed for the Indian diaspora in the U.S., has secured $14 million in seed funding led by Circle Ventures and Near Foundation, with Times Internet also joining the round. This investment aims to revolutionize how non-resident Indians (NRIs) manage their finances across borders.

• $14 million seed funding led by Circle Ventures and Near Foundation
• Over $150 million in processed remittances
• $87 million in rewards gross merchandise value
• Serving the financial needs of the Indian diaspora

Abound has already processed over $150 million in remittances and facilitated $87 million in rewards gross merchandise value (GMV), which is the total value of goods or services sold through the platform. This impressive traction showcases the app’s vital role in bridging the financial gap for the Indian-American community, which boasts a household income nearly twice the national average. With over 500,000 monthly transacting users, Abound’s growth trajectory is remarkable.

Nishkaam Mehta, the CEO of Abound, captures the app’s mission succinctly:

“Indians in America have a unique financial reality—one that spans two countries, two economies, and two currencies. Yet, the financial services available today weren’t designed for their needs.”

Abound steps in to fill this void, offering a comprehensive platform that not only facilitates money transfers but also provides rewards and future-ready financial products like high-yield savings, India-focused investments, and cross-border credit solutions.

The involvement of Circle Ventures and Near Foundation isn’t just about funding; it’s a testament to the transformative potential of stablecoins and Web3 technologies in global finance. Stablecoins are cryptocurrencies designed to have a stable value, often pegged to a fiat currency like the US dollar, making them ideal for transactions. Web3 refers to the next generation of the internet, where decentralized technologies like blockchain play a central role. Jeremy Fox-Geen, CFO at Circle, highlights this:

“Stablecoins and digital payment infrastructure are revolutionizing global finance, especially for diaspora communities.”

Similarly, Illia Polosukhin, Founder & CEO of NEAR Foundation, adds:

“Web3 and digital finance are transforming how communities move and manage money globally.”

With this new influx of capital, Abound plans to expand its offerings, enhance its technology, and scale operations to better serve its target audience. The app’s future products, such as Abound Elite, a premium service that promises faster money transfers, guaranteed best FX rates, and bill payment services, further demonstrate its commitment to innovating for its users.

While we’re all for the potential of blockchain and cryptocurrencies to disrupt traditional financial systems, it’s crucial to approach these developments with a critical eye. The promise of seamless, cost-effective money transfers through digital currencies is alluring, but challenges like regulatory hurdles and ensuring widespread user adoption remain significant. As Abound pushes forward, it must navigate these complexities without losing sight of its core mission to serve the Indian diaspora.

Bitcoin, while not directly involved in Abound’s operations, remains a beacon of what decentralized finance can achieve. Its role in the broader financial revolution cannot be understated, yet it’s equally crucial to acknowledge that altcoins and other blockchain systems, like Ethereum and NEAR, play indispensable roles in this ecosystem. They cater to niches that Bitcoin might not serve, fostering a diverse landscape of decentralized solutions.

As we champion decentralization and the ethos of effective accelerationism (e/acc), it’s vital to balance this optimism with a realistic assessment of the challenges ahead. Abound’s journey is a microcosm of the larger crypto narrative: full of promise, potential, and pitfalls that must be navigated with careful consideration and a commitment to serving its community.

And let’s not forget, in the world of crypto, there’s no shortage of scammers promising the moon. Beware of those who claim to predict the future with crystal balls and charts that look more like abstract art than financial analysis. Abound’s focus on real-world utility and tangible benefits for its users is a refreshing contrast to the noise.

Key Takeaways and Questions

• What is Abound’s primary mission?

  Abound’s primary mission is to create a seamless financial bridge between non-resident Indians (NRIs) in the U.S. and India, offering a unified platform for earning rewards, sending money transfers, and accessing future-ready financial products.

• Who are the lead investors in Abound’s seed funding round?

  The lead investors in Abound’s seed funding round are Circle Ventures and Near Foundation.

• How much remittance has Abound processed to date?

  Abound has processed over $150 million in remittances.

• What unique financial needs does Abound aim to address for the Indian diaspora?

  Abound aims to address the unique financial needs of the Indian diaspora by providing a platform that spans two countries, two economies, and two currencies, offering tailored rewards, seamless money transfers, and future-ready financial products.

• What future products does Abound plan to introduce?

  Abound plans to introduce high-yield savings, India-focused investments, and cross-border credit solutions.

• How does Abound’s approach align with the vision of its investors?

  Abound’s approach aligns with the vision of its investors, Circle and NEAR Foundation, by leveraging stablecoins, digital payment infrastructure, and Web3 technologies to revolutionize global finance, particularly for diaspora communities.

• What is the significance of the Indian American community’s wealth in the context of Abound’s services?

  The Indian American community’s wealth, being nearly 2x the average American household income, underscores the potential market for Abound’s services, as this affluent group’s unique financial needs are currently underserved.

• How might Abound’s model impact other diaspora communities?

  Abound’s success could serve as a model for other diaspora communities, demonstrating how tailored financial services can address specific needs and leverage blockchain technology to enhance cross-border financial management.