FamPay, a fintech startup that provides banking services for teenagers said on June 16, that it has raised $38 million in series A funding led by Elevation Capital.
Sequoia Capital along with Venture Highway, Y Combinator, Global Founders Capital, General Catalyst, Rocketship VC, and Greenoaks Capital also took part in the round.
FamPay makes online and offline payments easy for teenagers through their app and FamCard, a numberless card for teens to make secure payments. Once parents allow, teenagers can set their FamPay and make payments without setting up a bank account. The card details can only be accessed through the FamPay app which is device lock protected.
Kusha Taneja, co-founder FamPay said, “FamCard is the first card a teen ever holds and they remember it as their first bicycle or phone. It's their first step at being responsible with money, their first step into adulthood. We plan to stay with them from this first step throughout their financial journey by evolving the product as they grow.”
Mridul Arora, Partner, Elevation Capital said, “India today has a sizable population of 250M adolescents and we believe that catering to this unserved audience with innovative products contextualized to their needs and behaviours will create a very valuable business.”
FamPay's $38 million Series A is one of the largest Series A rounds for an Indian startup, underscoring investors' aggression about the startup. Only Ola Electric and Mensa Brands have raised larger Series A rounds at $58 million and $50 million respectively- and both companies have experienced founders at their helm
Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore said, “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,”
The company has more than 2 million registered users within 8 months of its launch. The company has said it will be using their latest round of funding to build their leadership team and grow fast.
In March 2020, FamPay said that it raised US$4.7 million in seed funding from Y Combinator, Venture Highway, Sequoia Capital and Global Founders Capital as well as angel investors Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau.