Fintech startup FamPay raises $38 million in Series A

CHENNAI:

FamPay

, a

fintech

startup aiming at building India's first neo-bank for teenagers, has raised $38 million in a Series A round led by Elevation Capital and participation from existing investor

Sequoia Capital India

.

Other early investors Venture Highway, Y Combinator, Global Founders Capital and new marquee investors like General Catalyst, Rocketship VC and Greenoaks Capital also participated in the round.

FamPay said it would use the latest round of funding to build their leadership team to further fuel growth. This is one of the biggest Series A funding rounds in India, and FamPay's valuation has grown 6X since its seed funding round in March 2020.

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. Teenagers 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. In addition to payment products, FamPay also offers gamified savings experiences and an in-app exclusive community to help teens learn, earn and grow.

“FamPay is creating a market segment that a lot of brands don't focus on today... 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," Kush Taneja, co-founder FamPay said.

The company says it has crossed two million in registered users within just eight months of its launch, and has been averaging 100% month on month growth.

In the long-term, FamPay envisions helping the younger demographic take the next step in their financial journey to become the only bank they will ever need.

“Sequoia India first intersected with the FamPay team during their seed round and decided to invest right away. We were struck by the passion, insights and customer centricity of Kush and Sambhav. Post launch, we were not surprised to see terrific user adoption and love," Shailendra Singh, managing director, Sequoia Capital (India), said.

Earlier in March 2020, Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah and Pine Labs CEO Amrish Rau had all invested in the company as part of the seed round.


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