Abound, a remittance app spun off by Times Internet in 2023, has raised $14 million in its first external funding round, aiming to reach more Indian expats in the US. The startup plans to utilize the fresh capital to expand its presence, increase its offerings, and improve its tech infrastructure.

The remittance market is experiencing significant growth, with India recording $129.1 billion in remittances in 2024, accounting for 14.3% of the global market, according to a World Bank report. Abound is well-positioned to tap into this growth with its mobile app, which allows users to send money to India, earn rewards, and get cashback on services including live sports streaming, grocery shopping, and OTT subscriptions.

According to Nishkaam Mehta, CEO of Abound, Indians are among the largest immigrant groups in the US, with an average household income of around $150,000. Mehta believes that Indian expats are vastly underserved in terms of products and services geared towards them. Abound aims to fill this gap by offering competitive exchange rates, rewards, and cashback, setting it apart from traditional banks and other remittance platforms.

Mehta, who previously worked at Hulu as head of mobile strategy and growth, joined Times Internet in 2019 to create a "super app" for non-resident Indians. The startup was incubated at the tech arm of Indian media conglomerate, The Times of India Group. Initially named Times Club, Abound has processed over $150 million in remittances from its more than 500,000 monthly transacting users, with revenue increasing by 50% month-over-month since launch.

Abound generates ad revenue from rewards and foreign exchange spread on money remittances. The startup sees significant potential for growth in foreign exchange, and its partnership with The Times of India's over 50 million monthly online visitors outside India helps it reach new users and offer a range of rewards. Mehta emphasized that Abound's rewards layer from The Times of India and other local advertisers allows it to compete on exchange rates without incurring high customer acquisition costs.

The seed round was led by NEAR Foundation, with participation from Circle Ventures, Times Internet, and other investors. Following the deal, Times Internet will continue to be the largest stakeholder in Abound. Satyan Gajwani, vice chairman of Times Internet, stated that the company would be "using its strategic assets to help accelerate Abound's growth."

The remittance market is highly competitive, with incumbents such as Western Union, PayPal, and MoneyGram, as well as newer players like Remitly and Wise. However, Mehta believes Abound's unique approach, which "super serves" users by offering competitive exchange rates, rewards, and cashback, sets it apart from competitors.

Abound currently has a team of 40 people, primarily based in India, and plans to expand its headcount and set up an executive team in the US. The company also plans to enter markets such as Canada, Singapore, and the UAE, which have significant populations of non-resident Indians. However, Mehta emphasized that the immediate focus is to cement its footing in the US and then run pilots in foreign markets.

With its unique approach and significant funding, Abound is well-positioned to capitalize on the growing remittance market and provide valuable services to Indian expats in the US and beyond.