Angel investors like Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah, and Pine Labs CEO Amrish Rau also participated in the funding round.
FamPay plans to use the funds raised to build out its engineering team, improve its technology and accelerate growth.
Founded by Kush Taneja and Sambhav Jain, FamPay enables teenagers to get a prepaid debit card without the need to set up a bank account. The card, which is being issued in partnership with IDFC First Bank, can be used to make payments for all online and in-store purchases.
“We believe that empowering teenagers with their own accounts can create a new network of users and open numerous opportunities in the market. As this is the habit-building age, there’s a huge scope for innovation and redefining how payments are done” said FamPay co-founder Sambhav Jain.
Users will instantly get a virtual card when they sign up for the service and they will also have an option to order physical cards in the coming weeks. Apart from this, users can also send money to their friends and make UPI payments through a mobile app, the company said in a statement.
Parents can top up their child’s FamPay account and let them spend it under their supervision. While parents will not be able to see the transaction, they will be able to choose the amount to be transferred to the personal account of the kids, the company said.
“Parents play an important role in shaping their children’s financial behaviour and there’s no better way than providing them with financial prudence at a young age,” said Neeraj Arora, former business head – WhatsApp and Founding LP and Advisor – Venture Highway.
The app which was operating in stealth mode until now, will be available as a free download on Google Play Store and Apple’s App Store.
“Most of the products built in India are focused on adults and there’s nothing out there for teenagers between the age 12-18 years. While digital payments are growing exponentially, the teens’ are unable to pay directly for the services and experiences that they value” said FamPay co-founder Kush Taneja.