The fintech startup Fampay will be using the funding in building a leadership team and capturing new users with help of marketing efforts and launching new platforms.
On Wednesday, Teen focused fintech startup FamPay said it has raised $38 Million in a Series A funding round which was led byElevation Capital and existing investor Sequoia Capital India.
Other investors such as Y Combinator, Venture Highway, Global Founders Capital, as well as new investors including General Catalyst, Rocketship VC, and Greenoaks Capital also participated in the round, the startup said in a press release.
The Bengaluru-headquartered startup helps teens make and track online payments through the FamPay app, and the FamCard, without setting up a bank account.
The startup will be adding more features in coming weeks including financial literacy games which will help teenagers develop the understanding of financial terms; new FamCards and an in-app commerce feature that will enable consumer brands looking to target the teenage segment sell directly on the FamPay app.
“With around 40 percent of the Indian population being below 18, every year millions of new teenagers will start using their first smartphone, and FamPay envisions becoming their go-to brand. By connecting with the young, we are building an early relationship with future adults most brands eventually want to tap, making FamPay the gateway for brands to target GenZ,” Sambhav Jain, Co-founder of FamPay said in a press statement.
The startup has over two million users on its platform currently, averaging 100 percent month-on-month growth. FamPay’s app and its numberless card help teens carry out transactions online, as well as offline, with consent from their parents. The app does not require a separate bank account to be opened.
FamPay says its goal is to create a generation of financially aware and savvy individuals who understand the fundamentals of personal finance, and can take important financial decisions independently.
Excluding the latest round, the startup, founded in 2019 by two IIT Roorkee graduates, has raised $4.9 million in funding so far, from investors including Sequoia, Venture Highway, Soma Capital, and Y Combinator.
“India today has a sizeable population of 250 million adolescents, and we believe that catering to this unserved audience with innovative products contextualised to their needs and behaviours will create a very valuable business”, said Mridul Arora, partner at Elevation Capital.
FamPay’s seed round also saw participation from prominent angel investors such as Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau.