Teen-focused Indian fintech startup FamPay raises $38M in Series A
FamPay, a fintech startup aiming to build India’s first neo-bank for teenagers, has announced the fundraise of US$38 million Series A, led by Elevation Capital and 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 – India’s first 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.
Kush Taneja, Co-Founder of 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.”
The company, which has crossed 2 million registered users within just 8 months of its launch. FamPay will use the latest round of funding to build their leadership team to further fuel growth.
“We are thrilled to welcome new investors and to see the confidence of our early investors reinforced during this round,” said Sambhav Jain, Co-Founder, FamPay. “With around 40% 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 them young, we are building an early relationship with the future adults most brands eventually want to tap, making FamPay the gateway for brands to target GenZ.”
It’s the most tech-savvy generation as they haven’t seen a world without the internet. They adapt to technology faster than any other target audience and their first exposure with the internet comes from the likes of Instagram and Netflix. This leads to higher expectations from the products that they prefer to use. We are unique in approaching banking from a whole new lens with our recipe of community and gamification to match the GenZ vibe,” he added.
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.
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 were also recently featured in the Forbes 30 Under 30 Asia 2021 list.