Fintech startup, FamPay, has raised $38 million as part of its Series A funding led by Elevation Capital.
Existing investor Sequoia Capital India, along with other investors including Venture Highway, YCombinator, Global Founders Capital also participated as a part of this round.
New global investors, including General Catalyst, Rocketship VC, and Greenoaks Capital, also invested in this round.
The company is expected to use the current fundraise to build its leadership team and further fuel growth.
The year-old startup makes it convenient for teenagers to make online and offline payments through the FamPay app. It also offers its physical numberless card ‘FamCard’ to teenagers, along with gamified saving experiences, on its app, to help kids learn money management.
“FamPay is creating a market segment that a lot of brands don’t focus on today. With the rapid growth, we saw our users loved the product simply because we gave them something they did not have before. FamCard is the first card a teen ever holds and it’s their first step at being responsible with money. We plan to stay with them from this first step throughout their financial journey by evolving the product as they grow,” said Kush Taneja, co-founder FamPay.
The company claims to have crossed 2 million registered users within just 8 months of its launch and is growing at 100 percent on a monthly basis.
“We have been extremely impressed by FamPay’s product innovations, growth trajectory and customer love – all early signs that FamPay is destined to become the destination app for GenZ and gateway for their access to fintech and beyond. India today has a sizable population of 250 million adolescents, and we believe that catering to this unserved audience with innovative products contextualised to their needs and behaviours will create a very valuable business,” said Mridul Arora, partner, Elevation Capital.
In March, last year, the company announced that it has raised $4.7 million as a part of its seed funding from YCombinator, Venture Highway, Sequoia Capital India, and Global Founders Capital.
“Sequoia India first intersected with the FamPay team during their seed round and decided to invest right away. It was apparent to us they understood their users and had very nuanced views on how to serve them best. The team is excited to double down in this round and is looking forward to working with them to help build FamPay over the next many years,” said Shailendra Singh, managing director, Sequoia Capital (India) Singapore.
Other angel investors which have backed the startup include Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs chief executive Amrish Rau.
