The round was led by Y Combinator, Venture Highway, Sequoia India and Global Founders Capital, with participation from Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau.
Founded by 21-year old entrepreneurs Kush Taneja and Sambhav Jain, FamPay is on a mission to build the future of payments for teenagers in India. Users can get their first card for online and in-store purchases without needing to set up a bank account. They can also send money to their friends and make UPI payments through the app.
Sambhav Jain, co-founder, said:
“It’s an interesting market to crack because the demands and lifestyle of a teenager are very different and they are not served by anyone yet. 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. We aim to grow as our users grow, developing new products for an expanding user base.”
Kush Taneja, co-founder, added:
“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. GenZ expects a combination of something cool, trustworthy and social, and that’s the sweet spot we are working day and night to cater to.”
In August 2019, during an experiment to test the market opportunity, FamPay attracted more than 20,000 users in just 7 days and got trending #5 on the Google Play Store. FamPay is now coming out of stealth to launch its product. The app will be available on both Google PlayStore and the App Store.
The startup said it will invest this funding in building a world-class engineering team to develop its technology and accelerate growth.