FamPay, a fintech app for teenagers, has raked in $38 million in its Series A round led by Elevation Capital. Existing backers Sequoia Capital India, Venture Highway, Y Combinator, Global Founders Capital and new investors General Catalyst, Rocketship VC, and Greenoaks Capital also participated in the round.
In March, Entrackr had exclusively reported about FamPay’s upcoming round.
According to the Bengaluru-based firm, it will use the fresh funds to build its leadership team and launch new features on the platform.
FamPay allows users to pay online and offline through their own UPI ID and a numberless prepaid card. Teens can enable FamPay with their parent’s consent and start making payments without the need to set up a bank account. According to the company, it aims to become a neo-bank for teens.
The startup claims to have more than 2 million registered users within just 8 months of its launch, and has been averaging 100% month on month growth.
Globally, the idea of introducing financial products for teens has been championed by the likes of Greenlight, Step and PIXPAY. In India, the Kush Taneja and Sambhav Jain-led company competes with Junio, Better Capital-backed Walrus and Yodda.
The competition in this segment is going to be more intense. Modern banking tech company Zeta, which recently entered the unicorn club after raising a new round from SoftBank, had tied up with FamPay to power their neo banking solution.
The new round takes the total investment in FamPay till date to $42.7 million including $4.7 million seed round raised in March 2020 from Y Combinator, Venture Highway, Sequoia, Global Founders Capital and angel investors including Kunal Shah and Amrish Rau.
This is also one of the largest Series A rounds for any Indian startup. Ola Electric and Ananth Narayanan-led Mensa Brands have been leading the list with $56 million and $50 million raised respectively in their Series A rounds.