How big is the market in India for a neobank aimed at teenagers? Scores of high-profile investors are backing a startup to find out.
Bangalore-based FamPay said on Wednesday 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 also participated in the new round, which brings FamPay’s to-date raise to $42.7 million.
One of the woes of anyone’s teenage years is that no one trusts you with money. You’re young enough for adults to be a little skeptical but old enough that it stings. But what if there was a platform where you could have control over how you spend your money? Well, that is exactly what FamPay, a Bengaluru-based neo-bank (a bank that’s completely online) start-up, is providing adolescents. With its app and numberless card, called Famcard, its founders, Kush Taneja and Sambhav Jain expect that it will impart some financial education on the youth.
Y Combinator-backed fintech startup FamPay, on Thursday (July 16), launched FamCard, a numberless card to allow teenagers to independently transact online with minimal intervention from parents.
However, the card requires top-ups from an adult but lets children spend it the way they want, under supervision. This relieves parents from giving children physical cash or their debit/credit card, and gives a sense of financial freedom to teens. FamPay believes that such an offering can efficiently teach children about financial management.