FamPay, a startup building India's first neobank for teenagers, has raised $38 million in a Series A funding round led Elevation Capital.
Sequoia Capital India, Venture Highway, Y Combinator, Global Founders Capital, General Catalyst, Rocketship VC, and Greenoaks Capital joined the round.
FamPay lets teens make online and offline payments through an app and a numberless card, which requires parental consent to set up. The startup also offers gamified savings experiences and an in-app community to help teens learn about money matters.
Users do not need a bank account, with the prepaid card provided by IDFC First Bank.
In a country where 40% of the population is under 18 and has grown up online and with mobile phones, FamPay has signed up more than two million registered users in the eight months since its launch.
Sambhav Jain, co-founder, FamPay, says: "By connecting with them [customers] 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."
In the long term, the startup says it wants to be "the only bank" this generation will ever need.