How big is Neobank’s Indian market for teenagers? Thousands of high-profile investors are supporting a startup for this. Bangalore-based Fampe said on Wednesday that it had raised $38 million in a series A round led by Elevation Capital. General Catalyst, Rocketship VC, Greenoax Capital and existing investors Sequoia Capital India, Y Combinator, Global Founders Capital and Venture Highway also participated in the new round, bringing Fampe’s $42.7 million date.
The size of the new investment makes it one of the rounds in India’s largest series. TechCrunch reported earlier this month that Famp was in talks with Elevation Capital to raise a new clause. Founded by Sambhav Jain and Kush Taneja (pictured above) – both graduated from the Indian Institute of Technology, Roorkee in 2019 – Ables enables teenagers to make online and offline payments in Fampe.
The thesis behind the startup said in an interview with TechCrunch that providing financial literacy to adolescents who have extra limited options to open a bank account in India at an early age. Through gamification, the startup said it was creating education about money fun for young people. Unlike in the United States, where teens get jobs in restaurants and other places and understand how to manage money at a young age, India does not have a similar tradition.
After collecting consent from parents, Fampe provides teens with an application for online shopping, as well as plastic cards – the country’s only countless cards – for offline transactions. Parents deposit money into their children’s famp accounts and keep an eye on high-ticket expenses. A number of startups in the U.S., including Greenlight, Step and Till Financial, are scrambling to provide services to teens in other markets, but there are currently no startups in India to address adolescents’ financial access problems, Mridul Aurora said in an interview with TechCrunch. Capital partner.
This could prove to be a good problem to solve – India is one of the oldest countries in the world. Aurora said, “If you are able to serve them for ages at a young age, you can stand as a product to go to them for a lot of things.” “Fampe serves a population that is very attractive and at the same time depressed.”