US-based Fintech startup FamPay which provides online and offline card payments for teenagers has raised US$ 38 million as part of its Series A funding on 16 June 2021.
Investors: The funding round was led by Elevation Capital with participation from existing investors Sequoia Capital India, along with other investors including Venture Highway, YCombinator, Global Founders Capital also participated as a part of this round. New global investors included General Catalyst, Rocketship VC, and Greenoaks Capital.
Purpose of the funding: The company will utilize the funds raised to build its leadership team and further fuel its growth.
Founded in 2019 by Kush Taneja and Sambhav Jain, FamPay is India’s first numberless card and UPI without a bank account. It provides a prepaid card for teenagers (13-19-year-olds), helping teens to make payments, online and offline through the FamCard. The startup’s aim is to drive the smart generation from cash to digital, all without a bank account, through a family-friendly and safe app. Teens can make secure payments after ensuring their parents and they themselves have completed their KYC verification.
FamPay offers its physical numberless card ‘FamCard’ and gamified saving experiences to help kids learn money management. FamPay claims to have crossed 2 million registered users within 8 months of its launch and is growing at 100 percent on a monthly basis.
What the founders have to say: “FamPay is creating a market segment that a lot of brands don’t focus on today. With the rapid growth, we saw our users loved the product simply because we gave them something they did not have before. FamCard is the first card a teen ever holds and it’s their first step at being responsible with money. We plan to stay with them from this first step throughout their financial journey by evolving the product as they grow.” — Kush Taneja, co-founder of FamPay.
What the investors have to say: “We have been extremely impressed by FamPay’s product innovations, growth trajectory and customer love – all early signs that FamPay is destined to become the destination app for GenZ and gateway for their access to fintech and beyond. India today has a sizable 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.” — Mridul Arora, partner, Elevation Capital.
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