FamPay, a Bengaluru, India-based digital payment app that lets parents pay and supervise financial activity for their underage kids, has raised $4.7 million in a funding round, according to reports.
The round was led by Y Combinator, Venture Highway, Sequoia India and Global Founders Capital.
Angel investors also participated in the funding round, including Twitch Co-Founder Kevin Lin, Robinhood Co-Founder Vladimir Tenev, Pine Labs CEO Amrish Rau and Cred Founder Kunal Shal.
“Most of the products built in India are focused on adults, and there’s nothing out there for teenagers between the age of 12 and 18 years,” said FamPay Co-Founder Kush Taneja. “[Generation] Z expects a combination of something cool, trustworthy, and social, and that’s the sweet spot we are working day and night to cater to.”
The company plans to use the fresh capital to expand, grow its infrastructure, add to its engineering team and speed up growth. The company was founded by two graduates of IIT-Roorkee, Taneja and Sambhav Jain.
“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. We aim to grow as our users grow, developing new products for an expanding user base,” Jain said.
The company was operating in stealth mode for a while, but it recently became available on both the App Store and Google Play Store. Cards will be issued in partnership with IDFC First Bank, and users can get virtual cards right away. Physical cards will be mailed after signup.
The FamCard can be used for both online and in-person purchases. It can also be used to send money and make payments through the UPI app.
“Their [founders] deep understanding of their target segment will help empower teenagers with the practical tools needed to navigate the tricky waters of personal finance,” said Neeraj Arora, Venture Highway founding limited partner and adviser.