The company will use the funding to grow its user base. Here are the top-line bullets you need to know.
FamPay, a payments platform for teenagers, has raised $38M in a Series A. The round drew participation from Sequoia Capital India, General Catalyst, Elevation Capital, and Y Combinator, among others.
How’s the company performing?
- Bangalore-based FamPay provides a mobile payments card and app for teenagers under parental supervision. Parents can set transaction limits. Users can pay online and offline through their UPI ID and a numberless plastic card without a bank account.
- The company plans to launch new features, such as financial literacy games, to help teenagers learn financial terms. It also expects to offer a built-in commerce feature on its platform that will allow brands to sell their products to teenagers.
- FamPay reported more than 2M users within 8 months since its launch and is averaging 100% month-on-month growth of registered users since then.
- The startup’s valuation has grown 6X since its seed funding in March 2020.
Why does the market matter?
- The fintech market is projected to grow at a CAGR of 22.2% to reach a value of $305B by 2025, according to Market Data Forecast.
- Q1’21 was the largest fintech funding quarter on record, with fintech startups drawing $22B across 614 deals.