Arbo Works Secures Funding from Sequoia Capital India & 120 Angels

Former Google Executives Launch Fintech Startup, Arbo Works

A collective of Google leaders, many with established working relationships, departed the company earlier this year to establish a new venture. This fintech company, known as Arbo Works, has successfully secured funding in a round spearheaded by Sequoia Capital India, as announced by both entities on Thursday.

Seed Funding and Investor Base

Arbo Works, under the direction of Caesar Sengupta, revealed on Thursday that the seed financing round attracted participation from 120 angel investors. A significant portion of these investors originate from Google, encompassing CEOs of Fortune 500 corporations, founders of thriving startups, and seasoned professionals from the technology and financial sectors, alongside experts in Artificial Intelligence and Machine Learning.

While the precise amount of the investment remains undisclosed, sources familiar with the deal have informed TechCrunch that it represents an eight-figure sum.

Runway and Team Composition

Sengupta, previously responsible for Google’s Next Billion Users program, indicated to TechCrunch that the received funds will provide Arbo Works with operational flexibility for several years. He characterized the funding as “a very significant round.”

The startup boasts eight co-founders, all formerly employed by Google. Currently, Arbo Works lists 21 team members on its website, with 20 having prior experience at Google – many of whom contributed to the company’s payment solutions.

A Collaborative Spirit

“We’ve all genuinely enjoyed collaborating with one another,” Sengupta stated. “It might sound unusual, but I would gladly continue working with this team in any capacity, even in a completely different field.” He further noted that the core group initially coalesced around Sundar Pichai, Google’s CEO, while working on Chrome OS, and many subsequently relocated to Asia.

Arbo Works' Focus and Market Strategy

Arbo Works has established its headquarters in both Singapore and the United States. Sengupta is currently reserved about detailing the company’s specific endeavors. However, he highlighted the opportunity the startup intends to capitalize on.

Drawing on his experience launching the peer-to-peer payments application Tez in India, Sengupta explained that Arbo Works has identified a gap within the consumer finance landscape. “We believe the broader financial sector is ripe for substantial improvement,” he said. “While payments are undergoing reinvention, the overall consumer experience regarding money management still requires significant development.”

The company is initially targeting the U.S. market due to its perceived openness, but intends to develop a globally applicable product. Expansion into India is planned in the near future.

Sequoia India's Perspective

Shailendra Singh, Managing Director at Sequoia India, commented that Arbo Works is addressing a “massive unsolved problem in the global fintech space.”

He added, “Caesar and his team possess a unique track record of creating innovative products utilized by billions of internet users worldwide. It is uncommon to see a team with such accomplishments uniting to launch a startup. Like many consumer fintech companies we’ve supported, this venture necessitates a user-centric approach, a more engaging user experience, and a more robust and scalable platform. The Sequoia India team and I are thrilled to be part of this journey, collaborating with the exceptionally talented individuals joining Arbo Works on this inspiring mission.”

Why Not Build Within Google?

When questioned about the decision to launch Arbo Works independently rather than pursuing the project within Google, Sengupta responded, “Large organizations operate differently.” He emphasized his team’s passion for product development, contrasting it with the complexities of navigating partnerships, regulations, and political considerations. “Google’s prominence means every step is scrutinized by numerous external stakeholders.”

Sengupta affirmed that his departure from Google was amicable. He described Sundar Pichai as “more than a mentor or boss… he is a brother to me and will always remain so,” and acknowledged Pichai’s profound influence on his career. He declined to confirm whether Pichai had invested in Arbo Works, but noted that numerous Google leaders have provided support.

Building a Long-Term Vision

Arbo Works is actively expanding its team, seeking individuals dedicated to building a product with a long-term vision and shared values. “We are looking for people who want to collaborate with exceptional colleagues and create something they can be proud of for decades to come,” Sengupta concluded.