Kids-focused fintech platform Junio has raised seed capital from Kunal Shah. According to three Entrackr sources, the company is also in an advanced stage to mop up $1 million from First Cheque and several individuals.
Junio has allotted of 75,000 convertible debentures at Rs 100 each to Shah’s QED Innovation Labs to raise Rs 75 lakh, regulatory filings show.
Founded by former Paytm senior vice president Shankar Nath along with Ankit Gera, Junio would act as a credit card and impart financial discipline to children, allowing them to make online and physical purchases. As per its website, it enables parents to control Junio’s smart cards through the app wherein they can create an in-app chore list and tie them with perks.
Junio would enable instant fund transfer, notifications and the flexibility to cancel the card at any moment through the app. “Junio has been in talks with First Cheque for a while and the contours of the deal have already been finalised. The investment is set to chip in over the next couple of weeks,” said one of the sources requesting anonymity.
It’s worth noting that Junio is yet to launch its Android and iOS apps.
Nath served Paytm as its chief marketing officer or CMO for about five years (Dec 2013 to Nov 2018) Whereas Gera spent over four and a half years at the SoftBank-backed payments firm.
“Individual investors including Deepak Abbot, Amit Lakhotia, Pravin Jadhav and a few others are set to invest in Junio,” said the second person on condition of anonymity.
Queries sent to Junio and First Cheque didn’t elicit any immediate response.
Junio would compete with FamPay, Walrus and yet to be launched Yodda. FamPay had raised $4.7 million in a seed funding round from Y-Combinator, Sequoia India, and Global Founders Capital whereas Walrus got backing from Better Capital and a few individuals.
Fintech solutions focused on kids and teenagers are in a nascent stage in India, however, they have been cracked by several startups in the US and the West. Greenlight is one of the largest firms with a unicorn status. Stripe-funded Step and Paris-based PIXPAY have also been building kids focused banking solutions.