FamPay, an Indian financial technology platform, recently announced that the company has secured $38 million in funding. Elevation Capital led the latest Series A investment round.
According to an official announcement, the company’s existing investor Sequoia Capital India also participated in the funding round. In March 2020, FamPay secured $4.7 million in funding from various investors, including Y Combinator, Venture Highway, Sequoia Capital India and Global Founders Capital.
FamPay claims to be India’s first neo-bank for teens. The company is making online and offline payments convenient for teenagers in the country through the FamPay app and FamCard. The company has crossed 2 million customers within 8 months of its launch.
Commenting on the latest Series A funding round, Sambhav Jain, Co-Founder at FamPay, said: “We are thrilled to welcome new investors and to see the confidence of our early investors reinforced during this round. With around 40% of the Indian population being below 18, every year millions of new teenagers will start using their first smartphone and FamPay envisions becoming their go-to brand. By connecting with the young, we are building an early relationship with the future adults most brands eventually want to tap, making FamPay the gateway for brands to target GenZ.”
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FamPay mentioned that the company’s early investors including Y Combinator, Global Founders Capital and new global investors like General Catalyst, Rocketship VC and Greenoaks Capital also supported FamPay in the latest investment round.
India and Fintech
Financial technology platforms in India have gained immense popularity in the last few years. According to a report published by RBSA Advisors in February 2021, India became the top fintech destination in Asia as the country’s financial technology sector attracted $647 million in investment across 33 deals during the second quarter of 2020.
“It’s the most tech-savvy generation as they haven’t seen a world without the internet. They adapt to technology faster than any other target audience and their first exposure with the internet comes from the likes of Instagram and Netflix,” Jain added.