Fintech, edtech, and social media sectors are showing exponential growth despite the covid-19 emergency. Investors are also pouring a lot of money to establish these sectors’ startups. In the latest funding event, FamPay has raised $38 million with the help of new and existing investors. FamPay, a teenagers-oriented fintech firm, revealed this information on Wednesday.
FamPay is Getting Financial Support for Its Unique Concept
In the Indian startup ecosystem, the teenagers aimed fintech sector is the least untouched. FamPay is here to bridge the gap between fintech services and the young generation of India. And, it is getting immense support from the investors.
On Wednesday, FamPay announced that it has collected $38 million in a Series A funding round led by Elevation Capital. General Catalyst, Rocketship VC, Greenoaks Capital. FamPay’s existing investors including Sequoia Capital India, Y Combinator, Global Founders Capital, and Venture Highway were also part of the new round. Overall, the startup has raised $42.7 million in different financing rounds to now.
FamPay’s $38 million funding of series A round is one of the largest among other A series financing rounds concluded by Indian startups.
IIT Alumni Sambhav Jain and Kush Taneja founded FamPay to aware teenagers about online and offline payments. The startup helps the teenagers with the help of gamification about the financial processes.
Talking about the FamPay concept with TechCrunch, Jain said:
“The startup is to provide financial literacy to teenagers, who additionally have limited options to open a bank account in India at a young age. Through gamification, it’s making lessons about money fun for youngsters.”
In the US, teenagers are involved from the beginning in financial activities by getting part-time jobs and also taught how to handle money at teenage. But, such a concept doesn’t exist in India. Indian teenagers are completely focused on study up to certain age. They have no exposure to handling financial transactions.
How FamPay Works?
FamPay takes permission from teenagers’ parents and then provides the FamPay app to them for registration. The app allows them to do financial activities with the credit provided by their parents. FamPay is also introducing numberless plastic cards for offline transactions. Parents keep track of the total spendings done by the teenagers. If it’s a high ticket transaction, parents consent is compulsory to complete the payment.
Greenlight, Step, and Till Financial are a few of the teenagers’ based startups operating in the US and other parts of the world. But, in India, FamPay has created a buzz with this unique idea for Indian teenagers. In other markets, including the U.S., several startups including Greenlight, Step, and Till Financial are chasing to serve the teenagers, but in India, there currently is no startup looking to solve the financial access problem for teenagers, said Mridul Arora, a partner at Elevation Capital, in an interview with TechCrunch.
Elevation Capital’s partner Mridul Arora, one of the investors in FamPay, looked pumped up with the startup’s idea to target Indian teenagers.
Talking about the need for FamPay, Arora said:
“If you’re able to serve them at a young age, over a course of time, you stand to become their go-to product for a lot of things. FamPay is serving a population that is very attractive and at the same time underserved.”
Jain said that FamPay is in the initial stage. In future, it will provide more products to the tech-savvy youth generation. The startup has a target to establish itself as the neo bank. those services might be.
Talking about his startup and teens expectations from the operations, he said:
“Teens represent the “most tech-savvy generation, as they haven’t seen a world without the internet. They adapt to technology faster than any other target audience and their first exposure with the internet comes from the likes of Instagram and Netflix.”
He further added:
“This leads to higher expectations from the products that they prefer to use. We are unique in approaching banking from a whole new lens with our recipe of community and gamification to match the Gen Z vibe.”
Arora, the investor of FamPay, also talked about the ambitious plans FamPay has for the future. He said:
“I don’t look at FamPay just as a payments service. If the team can execute this, FamPay can become a very powerful gateway product to teenagers in India and their financial life. It can become a neobank, and it also has the opportunity to do something around social, community, and commerce.”
FamPay co-founders praised Kunal Shah-Cred founder and Amrish Rau-Pine Labs owner for helping them in the initial journey of FamPay.
Recently, FamPay has surpassed 2 million registered users. Fresh engineers, product expansion is the future target of the startup.