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fampay funding: FamPay raises one of many greatest Sequence A funding rounds in India – NEWPAPER24

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fampay funding: FamPay raises one of many greatest Sequence A funding rounds in India

2021-06-16 01:30:00

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Mumbai: Fintech startup FamPay, which affords funds and monetary companies to youngsters, has raised $38 million in a Sequence A funding spherical, led by Elevation Capital and participation from current investor Sequoia Capital India.
Different early buyers akin to Enterprise Freeway, Y Combinator, World Founders Capital in addition to new buyers Basic Catalyst, Rocketship VC and Greenoaks Capital additionally participated within the fundraising.

The FamPay funding marks one of many largest Sequence A rounds in India’s startup ecosystem, with solely
Ola Electrical ($58 million in 2019) and
Mensa Manufacturers ($50 million in Might 2021) having acquired greater cheques of their respective Sequence A rounds, in response to knowledge sourced from Enterprise Intelligence.

ETtech
(Graphic: Rahul Awasthi/ETtech)

The deal values FamPay at $150-$170 million, in response to sources.
The fintech firm was on the verge of closing a smaller $25 million spherical in March, however curiosity from a number of buyers led to the scale and valuation soar, sources stated.

Based in 2019 by Indian Institute of Expertise (IIT)-Roorkee graduates Kush Taneja and Sambhav Jain, FamPay
affords digital pockets, commerce in addition to monetary companies to children with specialised parental controls in addition to transaction limits.

The agency claims to have two million registered customers.

“With round 40% of the Indian inhabitants being under 18, yearly tens of millions of latest youngsters will begin utilizing their first smartphone and FamPay envisions turning into their go-to model,” Jain stated. The funds will likely be used to extend hiring throughout operations, he informed ET in a video interview on Tuesday.

The agency is utilizing a mixture of influencer advertising and marketing by way of social media, in addition to model outreach by way of its mini commerce retailer, as methods to onboard prospects and improve engagements, Jain stated.

Earlier this yr, the corporate
additionally launched one of many first ‘number-less’ pay as you go playing cards for purchasers in a tie-up with IDFC First Financial institution.

“FamPay is making a market phase that a whole lot of manufacturers do not concentrate on at this time. With the speedy progress, we noticed our customers loving the product just because we gave them one thing they didn’t have earlier than,” Taneja stated.

In March 2020, the corporate stated it
raised $4.7 million in seed funding from Y Combinator, Enterprise Freeway, Sequoia Capital India, and World Founders Capital, in addition to angel buyers, together with Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, Cred founder Kunal Shah and Pine Labs CEO Amrish Rau.

“India at this time has a large inhabitants of 250 million adolescents and we consider that catering to this unserved viewers with modern merchandise contextualised to their wants and behaviours will create a really priceless enterprise,” stated Mridul Arora, accomplice, Elevation Capital.

In response to Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore, the enterprise capital agency is taking a look at fintech as a long-term wager in India.

“Sequoia India first interacted with the FamPay workforce throughout their seed spherical and determined to speculate immediately. The workforce is worked up to double down on this spherical and is trying ahead to working with them to assist construct FamPay over the subsequent a few years,” Singh added.

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