FamPay, a teenager-focused payments app has raised $4.7 million in seed funding from different investors such as Y Combinator, Sequoia India, Venture Highway, and Global Founders Capital. FamPay is founded by Kush Taneja and Sambhav Jain and enables teenagers to get a prepaid debit card without the need to set up a bank account. The same can be used to make payments for all online and in-store purchases.
“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” said FamPay co-founder Sambhav Jain.
It is raising funds to improve its technology and accelerate growth. 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.
“Most of the products built in India are focused on adults and there’s nothing out there for teenagers between the age of 12-18 years. While digital payments are growing exponentially, the teens’ are unable to pay directly for the services and experiences that they value” said FamPay co-founder Kush Taneja.
The company also said in a statement that 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. Also, users can send money to their friends and make UPI payments through a mobile app.
“Parents play an important role in shaping their children’s financial behavior and there’s no better way than providing them with financial prudence at a young age,” said Neeraj Arora, former business head – WhatsApp and Founding LP and Advisor – Venture Highway.
The app is available as a free download on the Google Play Store and Apple’s App Store.