Teen-focused payments app FamPay nets $4.7m from Y Combinator, others

India-based payments app FamPay announced that it has raised US$4.7 million in seed funding from Y Combinator, Venture Highway, Sequoia India, and Global Founders Capital, as well as angel investors.

The company plans to use the new funds to build an engineering team and to continue developing its technology, according to a statement.

FamPay co-founders Kush Taneja (Left) and Sambhav Jain / Photo credit: FamPay

Founded by 21-year-old entrepreneurs Kush Taneja and Sambhav Jain, FamPay claims to be the first payments app for teenagers and their families in India.

The app allows teenagers to get a card without a bank account. With the FamCard, they can purchase online and in-store goods, as well as make peer-to-peer, card, and unified payments interface payments. Parents can also top up their child’s FamPay account and let them spend the funds under their supervision.

In August last year, FamPay launched an experiment to test the market opportunity, where it attracted over 20,000 users in seven days, the company claims. It said that gamification and social elements that encouraged sharing contributed to the growth.

“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 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.”

FamPay is now coming out of stealth mode to launch its product, which will be available on both Google Play and App Store. The cards will be issued in partnership with Indian banking company IDFC First Bank.