Fintech startup Belong has raised US$5 million in a funding round led by Elevation Capital.

The funding will support its operations targeting non-resident Indians (NRIs), with participation from Relentless Ventures and angel investors including Urban Company co-founders Abhiraj Singh Bahl and Varun Khaitan, Zomato CFO Akshant Goyal, Mamaearth co-founder Varun Alagh, PayU’s Vineet Sethi, and McKinsey partner Aditya Sharma.

Founded in 2024, Belong has launched its first product, a USD fixed deposit, in collaboration with Indian banks through Gift City.

The platform aims to simplify saving and investing for NRIs by addressing issues like complex KYC processes and high currency conversion costs.

It also provides digital tools such as an NRI FD rates explorer, a rupee versus dollar tracker, and a residential status calculator.

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🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ The untapped NRI investment opportunity despite growing remittances

The decline in NRIs’ share of mutual fund assets from 2.9% to 2.3%, despite remittances growing from $82 billion to $129 billion, highlights a significant market gap that Belong aims to address 1.

This disconnect between remittance growth and investment participation suggests structural barriers preventing NRIs from accessing Indian financial markets easily, despite their financial capability and interest in maintaining economic ties to India.

With an estimated 31 million NRIs globally, this represents a substantial untapped market. NRIs contribute 2-3% of India’s GDP through remittances but remain underserved in investment products 1.

The pain points Belong identifies (complex KYC, high currency conversion costs, and cumbersome procedures) align with findings that despite India’s domestic fintech revolution, solutions for cross-border finance have lagged behind.

Traditional banks have offered NRI services for decades, but their digital transformation specifically for non-resident customers has been slower than for domestic clients. This has created an opening that specialized fintechs like Belong are now targeting.

2️⃣ GIFT City emerges as India’s regulatory sandbox for cross-border fintech innovation

Belong’s strategic launch through GIFT City leverages India’s first International Financial Services Centre (IFSC), which was specifically designed with a unified regulatory framework to streamline financial operations 2.

GIFT City provides special tax incentives and operational benefits for companies serving international clients, making it particularly suitable for startups focusing on NRI services with its single-window clearance system.

The IFSCA’s establishment of specialized fintech licenses, which Belong has obtained, demonstrates India’s policy shift toward creating regulatory environments that enable innovation while maintaining oversight 3.

This approach mirrors successful fintech hubs like Singapore and London that have used regulatory sandboxes to nurture financial innovation, with GIFT City positioned as India’s answer to these global centers.

Recent developments include plans for an International Fintech Innovation Hub with Asian Development Bank support and major investments from established players like Paytm, indicating GIFT City is gaining momentum as a fintech ecosystem 2.

3️⃣ Cross-border fintech represents the next frontier in India’s financial innovation

Belong’s funding comes amid growing investor interest in cross-border financial services, as evidenced by Aspora’s recent $53 million raise for remittance services targeting immigrant communities.

This pattern suggests venture capital is recognizing that while domestic Indian fintech markets are becoming saturated with multiple competitors in payments, lending, and investment, the cross-border segment remains relatively underdeveloped.

The Indian fintech industry, valued at approximately $150 billion, has primarily focused on domestic consumers, leaving international financial services as a blue ocean opportunity 4.

Cross-border fintech presents unique challenges compared to domestic operations, including navigating international regulations, managing currency risks, and building trust with customers across different jurisdictions.

Successful companies in this space typically combine deep regulatory expertise with seamless user experiences, explaining why Belong has prioritized securing appropriate licenses and focusing on simplified processes before scaling their product offerings.

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