Kids-focused neo-banking platform FamPay is in late-stage talks to mop up a $25-30 million led by Elevation Capital in Series A round, said three people aware of the details of the transaction. The fresh fundraise for the Bengaluru-based company after a gap of a year.
Venture Highway had led its seed round along with participation from Sequoia Capital and Y Combinator in March 2020. If the new round goes through, it would be the largest fundraise in the teens-focused fintech segment.
“Elevation Capital would lead the round while existing investors Sequoia Capital would participate with a significant contribution. The contours of the deal have been finalised and if nothing goes wrong from here the deal would be materialised soon,” said one of the sources requesting anonymity.
According to sources, other existing investors including Y Combinator and Venture Highway would also participate in the fresh financing round. “FamPay’s valuation would be in the range of $75-90 million in the Series A round,” said another person who also wished not to be named.
Entrackr’s queries sent to FamPay, Elevation Capital and Sequoia Capital didn’t elicit any immediate response. We will update the story in case they do.
Besides YC and Sequoia, Global Founders Capital along with a few angels also participated in its seed round. FamPay allows users to pay online and offline through their own UPI ID and a numberless prepaid card. Launched in July, FamCard is like a debit card that teenagers can use to make payments independently.
According to Sensor Tower data, FamPay has lifetime downloads of about 1.5 million on Android devices. On its website, it claims to be used by about a million users.
Founded by Kush Taneja and Sambhav Jain, the startup was a part of Y Combinator’s Summer batch 2019 and competes with Junio, Better Capital-backed Walrus and Yodda. The fresh proceeds will help FamPay corner more market share and develop a wide gap in terms of scale as compared to its competitors.
While fintech solutions focused on kids and teenagers are in a nascent stage in India, several companies in the West have scaled up at a quick pace. Greenlight is one of the largest firms in the space with a unicorn status along with Stripe-funded Step and Paris-based PIXPAY.