Neobanking platform for teens FamPay raises $38 million in series A round

On June 16, Bangalore-based fintech start-up FamPay announced that it has raised $38 million in its series A round led by Elevation Capital, General Catalyst, Rocketship VC, Greenoaks Capital and existing investors Sequoia Capital India, Y Combinator, Global Founders Capital and Venture Highway took part in the new round as well, which brought FamPay’s to-date raise to $42.7 million.

FamPay, a neobank helps teenagers make online and offline transactions through their app along with FamCard, a numberless card for them to make secure payments. With the permission of their parents, they can set their FamPay and make payments without a bank account.

The co-founder of FamPay, Sambhav Jain said in a press statement, “With around 40 percent of the Indian population being below 18, every year millions of teenagers will start using their first smartphone with FamPay envisions becoming their go-to brand. By connecting with the young, we are building an early relationship with future adults most brands eventually want to tap, making FamPay the gateway for brands to target GenZ.”

The FamPay funding is one of the largest Series A rounds for an Indian start-up. According to Venture Intelligence data, Ola Electric and Mensa Brands at $58 million in 2019 and $50 million in May 2021 respectively are the only companies to receive bigger cheques in their Series A rounds.

“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,” added the Managing Director of Sequoia Capital (India) Singapore.

Within 8 months of its launch, the startup has more than 2 million registered users. It will use their latest funding round to build their leadership team and grow fast.

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