NEW DELHI: Fintech startup FamPay said that it has raised $4.7M in a seed round by Y Combinator, Venture Highway, Sequoia India and GFC (Global Founders Capital). The round also witnessed the particiapation of Kevin Lin, Vladimir Tenev, Kunal Shah, and Amrish Rau.
Founded by Kush Taneja and Sambhav Jain of IIT Roorkee to provide digital payment option via mobile app to teenegers who largely rely on cash. The company said that it will invest new funding in expanding engineering team, technology and business growth.
The company informed that with FamPay, teenagers can get their first card without the need to set up a bank account. They can use the FamCard for all online and in-store purchases. They can also send money to their friends and make UPI payments through the app. Instead of managing individual expenses, parents can just top up the FamPay account and let their child spend it however they want – anytime and anywhere, under their supervision.
“It's an interesting market to crack because the demands and lifestyle of a teenager are very different and they are not served by anyone yet. We believe that empowering teenagers with their own accounts can create a new network of users and open numerous opportunities in the market. As this is the habit building age, there's a huge scope for innovation and redefining how payments are done. We aim to grow as our users grow, developing new products for an expanding user base,” said Sambhav Jain, Co-Founder of FamPay.
Commenting on the move, Neeraj Arora, former business head – WhatsApp and Founding LP and Advisor – Venture Highway said, “Parents play an important role in shaping their children's financial behaviour and there's no better way than providing them with financial prudence at a young age. Sambhav and Kush are energetic and visionary founders with a very fresh and user-focused approach towards this market. Their deep understanding of their target segment will help empower teenagers with the practical tools needed to navigate the tricky waters of personal finance.“
FamPay is now coming out of stealth to launch it's product. The app will be available on both Google PlayStore and the App Store. The cards will be issued in partnership with IDFC First Bank. While the users can get the virtual card instantly on signing up, the physical cards can be ordered through the app in the following few weeks, said the company.
Kush Taneja, Co-Founder of FamPay said: “Most of the products built in India are focused on adults and there's nothing out there for teenagers between the age 12-18 years. While digital payments are growing exponentially, the teens' are unable to pay directly for the services and experiences that they value. GenZ expects a combination of something cool, trustworthy and social, and that's the sweet spot we are working day and night to cater to.”