ⓘ Featured image details: FamPay founders Kush Taneja (L) and Sambhav Jain (R)
▸ The company will utilise the funds to build its engineering team, improve technology and accelerate growth
Bengaluru-based fintech startup FamPay on Thursday raised $4.7 million in a seed funding round led by Y Combinator, Sequoia India, Venture Highway and Global Founders Capital (GFC), with participation from a few angel investors including Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah, and Pine Labs CEO Amrish Rau.
The company in a statement mentioned that the funds will be deployed across segments of the business including hiring, improving technology, and expansion.
Founded last year by Kush Taneja and Sambhav Jain, FamPay allows teenagers to issue prepaid debit cards without setting up a bank account. The teenager focused company offers debit cards in partnership with IDFC Bank which can be used to make payments for all online and offline purchases, send money to family and friends, and to make UPI payments as well.
Commenting on the investment round, Sambhav Jain said,
“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”
The statement also added that currently users can issue virtual debit cards instantly and in the coming months the company will also start offering physical cards.
FamPay debit cards also let parents to top-up their children’s FamPay Account which they can spend it under their parents’ supervision. On similar lines, Neeraj Arora, former business head of WhatsApp and founding LP & Advisor of 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,”
Talking about the unique proposition of FamPay, Kush Taneja commented,
“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”
The FamPay App until now is operating in stealth mode but will be available for free download on Google Play Store and Apple’s App Store.
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