FamPay, a fintech startup aiming to build India's first neo-bank for teenagers, has announced the fundraise of $38 million in Series A, led by Elevation Capital with major participation from existing investor Sequoia Capital India. Other early investors, Venture Highway, Y Combinator, Global Founders Capital and new global investors like General Catalyst, Rocketship VC, and Greenoaks Capital also participated in the round.
FamPay makes it convenient for teenagers to make online and offline payments through the FamPay app as well as the FamCard - a numberless card for teens for secure payments. Teens can enable FamPay after their parent’s consent and start making payments without the need to set up a bank account. All the card details can only be accessed through the FamPay App and are device lock protected. The safety and support features make FamPay loved by teens and trusted by parents. In addition to payment products, FamPay also offers gamified savings experiences and an in-app exclusive community to help teens learn, earn and grow.
The company, which has crossed two million registered users within eight months of its launch, has been averaging 100% month-on-month growth. FamPay will use the latest round of funding to build its leadership team to further fuel growth. In the long-term, FamPay envisions helping this demographic take the next step in their financial journey to become the only bank they will ever need. FamPay invests heavily in user experience and product innovation, to make simple and convenient payments accessible for teens. The company’s goal is to enable a financially-aware generation who understand the fundamentals of personal finance and are capable of making financial decisions confidently.
Kush Taneja, co-founder FamPay said, “FamPay is creating a market segment that a lot of brands don't focus on today. With the rapid growth, we saw our users loving the product simply because we gave them something they did not have before. FamCard is the first card a teen ever holds and they remember it as their first bicycle or phone. It's their first step at being responsible with money, their first step into adulthood. We plan to stay with them from this first step throughout their financial journey by evolving the product as they grow.”
In March 2020, the company announced raising US $4.7 million in seed funding from Y Combinator, Venture Highway, Sequoia Capital India, and Global Founders Capital, as well as angel investors, Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau. The founders, Kush Taneja and Sambhav Jain, were also recently featured in the Forbes 30 Under 30 Asia 2021 list.