Bengaluru-based FamPay, a family-friendly digital payment app, has raised $4.7 million in a seed funding round led by Y Combinator, Venture Highway, Sequoia India, and and Global Founders Capital, per an announcement.
Angel investors in the financing included Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah and Pine Labs chief executive Amrish Rau, the startup said in a statement.
The startup will use the capital to enhance its technological infrastructure, build its engineering team, and accelerate growth, the statement added.
“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,” FamPay founder Sambhav Jain said.
Founded by IIT-Roorkee graduates Kush Taneja and Jain, FamPay allows parents to send money to their kids below the age of 18, which they can spend securely under parent supervision.
The company has so far been operating in stealth mode. The app will now be available on both Google PlayStore and the App Store. The startup will issue cards in partnership with IDFC First Bank. While the users can get the virtual card instantly on signing up, the physical cards can be ordered through the app in the following few weeks, the company said.
Customers can use FamCard for all online and in-store purchases. They can also send money to their friends and make UPI payments through the app, it added.
“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,” Venture Highway founding limited partner and adviser Neeraj Arora said.