FamPay, a teenager-focused payments app, announced it has raised $4.7 million seed funding led by Y Combinator, Sequoia India, Venture Highway and GFC (Global Founders Capital). Angel investors such as Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah, and Pine Labs CEO Amrish Rau also participated in the funding round.
The company will utilise the funds raised to build out its engineering team, improve its technology and accelerate growth. FamPay was founded in 2019 by Kush Taneja and Sambhav Jain. Headquartered in Bengaluru, the company enables teenagers to get a prepaid debit card without the need to set up a bank account. The card can be used to make payments for all online and in-store purchases.
Sambhav Jain, co-Founder, FamPay, 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.”
Speaking on the Startup, the company said, “Users will instantly get a virtual card when they sign up for the service and they will also have an option to order physical cards in the coming weeks. Apart from this, users can also send money to their friends and make UPI payments through a mobile app. Parents can top up their child’s FamPay account and let them spend it under their supervision. While parents will not be able to see the transaction, they will be able to choose the amount to be transferred to the personal account of the kids.”
Neeraj Arora, Advisor, 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.”
Kush Taneja, co-Founder, Family, said, “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.”
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