Fampay Solutions Pvt. Ltd, which provides a payments service focused on teenagers, on Wednesday said it has raised $38 million (Rs 278.2 crore) as part of its Series A funding round.
The funding was led by Elevation Capital, formerly SAIF Partner, said Fampay in statement.
New investors General Catalyst, Rocketship VC, and Greenoaks Capital also participated in this funding round, it added.
VCCircle had reported in April that Rocketship.vc had invested in Fampay.
The funding round also saw "major participation" from existing investor Sequoia Capital India, the statement said. Other early investors Venture Highway, Y Combinator, and Global Founders Capital also pooled in capital, it added.
Fampay will us the fresh capital to build its leadership team to boost its growth.
The Bengaluru based startup was founded in 2019 by Kush Taneja and Sambhav Jain, alumni of the Indian Institute of Technology, Roorkee. Through its platform, teenagers and minors can conduct digital and card-based payments. The startup also provides gamified savings experiences and an in-app exclusive community to help teens learn, earn and grow.
"By connecting with them 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," said Jain, co-founder, Fampay.
Mridul Arora, partner, Elevation Capital, noted that India today has a sizeable population of 250 million adolescents and the VC firm believes that catering to this unserved audience with innovative products contextualised to their needs and behaviours will create a very valuable business.
Fampay claims it crossed 2 million registered users within just eight months of its launch. The startup has been averaging 100% month on month growth.
Fampay had raised $4.7 million in seed funding from institutional and angel investors in March last year.
According to a VCCircle analysis last month, fintech dominated all PE/VC dealmaking that has taken place in the world of technology this year.
The tech world itself saw 100 PE/VC deals till the first week of May raising close to $6.5 billion. Of this, fintech accounted for over $1.2 billion.
In fintech, at least five startups have raised over $100 million each this year with Kunal Shah-led Cred and payment gateway RazorPay making it to the top 10 technology deals chart.
Payments app BharatPe and student lending firm KrazyBee have also raised significant funding this year.