Peak XV-backed FamPay undertakes layoffs, cuts 18 jobs

This will be FamPay's second round of layoffs.

Bengaluru-based fintech startup FamPay has laid off around 18 of its employees across functions due to its shift in focus from hyper-growth to sustainability, the company's cofounder Sambhav Jain wrote on X (formerly Twitter) on August 2.

"Given the shift in focus of the company from hyper-growth to sustainability, we wouldn’t have been able to provide these people with a role in the company that could justify their personal growth, could fuel the fire to their passion, and most importantly joy at work," Jain said.

As per reports, this will be the company's second round of layoffs, as it undertook layoffs in April of 2023 where 50-60 employees were impacted.

Founded in 2019, FamPay is a neo-bank or payment app that offers cashless facilities for teenagers. It has launched a numberless card, called FamCard that teenagers can use to make online payments like Unified Payments Interface (UPI) and Peer-to-Peer (P2P) transactions.

In 2021, FamPay raised $38 million in series A funding led by Elevation Capital. Peak XV (formerly Sequoia Capital) along with Venture Highway, Y Combinator, Global Founders Capital, General Catalyst, Rocketship VC, and Greenoaks Capital also took part in the round.