Fampay Valuation, Funding & Shareholders Breakdown – 2024

Fampay valuation

FamPay is an Indian fintech startup that aims to provide digital payment services to adolescents. The app enables teens to make online and offline payments, manage their finances, and learn financial literacy skills. Recently, it has been in the limelight. Reason? Fampay valuation! Yes, the four-year-old startup has become a “Soonicorn” i.e. soon-to-be unicorn. How did its valuation rise so high? Due to its effective business model and significant funding from investors.

Fampay valuation

Curious to know its funding and shareholders breakdown? Stick to this write-up and you will know it all.

Keep reading!

Fampay Valuation

According to recent reports, Fampay valuation is Rs.350 crore ($42.9 million). Now you must be wondering how its valuation reached this high. It’s through its breakthrough business model that won the trust of the public as well as the investors. 

FamPay is a teen-focused fintech startup that enables those under 18 to make digital payments.

  1. Providing a safe and secure platform: This is the foremost part of FamPay’s working strategy. FamPay ensures that its app is secure and easy to use for teenagers. It also provides features such as parental controls and transaction limits to ensure that parents can monitor and control their children’s spending.
  2. Building financial literacy: FamPay aims to promote financial literacy among teenagers by providing them with educational resources and tools. The app offers a gamified interface to teach financial literacy skills and rewards users for learning and practicing good financial habits.
    Offering rewards and incentives: It offers various rewards and incentives, such as cashback on transactions and referrals, to encourage teenagers to use the app and make responsible financial decisions.
  3. Partnering with merchants: FamPay partners with various merchants to offer discounts and cashback to its users. This partnership also helps FamPay increase its user base and generate revenue. Its prominent partners are-Leaf, Unacademy, Zomato pro, Puma, Urban Company, Bewakoof, and Skull Candy

For instance, FamPay successfully drove new leads for its partner “Unacademy.” The ed-tech platform witnessed a massive surge in enrollments for their scholarship tests. Children paid for it through FamPay.

Note: We have already explained the revenue sources and working strategy of Fampay in the article “Fampay Business Model.” You can look into it for more details.

Fundings & Shareholders Breakdown

Within 4 years of its establishment, Fampay came into the limelight. Reason? Due to its effective functioning. However, another reason for being in the headlines is its potent VCs that act as the backbone of the company. All thanks to those venture capitalists due to which Fampay valuation rose to Rs.350 crore.

Let’s look at the funding rounds of Fampay-

Venture Capitalists
(Lead Investors)
Funding AmountDate
Elevation Capital,
Peak XV Partners 
$38 million
(Rs.311.6 crore)
June 16, 2021
Peak XV Partners,
Venture Highway
$4.7 million
(Rs.38.5 crore)
March 12, 2020
Y Combinator$150 thousand
(Rs.1.2 crore)
May 17, 2019
Venture Capitaists of Fampay

Fampay has raised a total of $42.9 million in funding over 3 rounds. Its latest funding round occurred on June 16, 2021.

Currently, Fampay valuation is Rs.350 crore ($42.9 million). Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.

Is Fampay Profitable?

By now you have realized what could be the financial condition of the company. Spending heavily on expenses and earning low revenue comparatively, resulted in the mounting losses of the company. 

Look at the overall financials of Fampay-

Fampay Financials (FY22)Amount (in crores)
Market ValuationRs.350 crore ($42.9 million)
Revenue EarnedRs.3.06 crore
ExpensesRs.50.62 crore
Profit/LossLoss of Rs.43.36 crore
Fampay Financials (FY22)

High Expenses and low revenue led to the humongous loss of Rs.43.36 crore for Fampay. Its cash expenses have surpassed the threshold value. Due to this, its annual losses mounted over three folds. Back in the year 2020 (the first year of its operations), Fampay earned a profit of Rs.32 lakh. Unfortunately, it couldn’t regain its profitable status in the following years.

Future Plans of Fampay

Fampay shareholders

The first half of 2023 was quite tough for Fampay. Reason? Layoffs & mounting losses. As per the latest reports, the company is all set to raise new revenue sources. But they haven’t released any official statements yet.  The company is exploring more mergers and acquisitions opportunities, to diversify the portfolio and gain a steady growth rate. 

Currently, Fampay’s user base is around 10 million. And with the diversification of its portfolio and operations, it is expecting the expansion of its user base too. You may say that the company spent too much on the expenditures. 

But Fampay doesn’t see it merely as expenditures. As per the company, its expenses are the significant investments that will bring a good ROI in the future!

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Published By: Supti Nandi
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Shivangi Kant
Shivangi Kant
9 months ago

Fampay is India’s first payment app for teenagers and families.It offers one account for all your spending. One child can easily apply after 11+ age.It offers payment anywhere in India without holding any bank account in real. Majorily it has three tailor-made membership plans for people to opt for.Yes,obviously after year 2020 they face losses too.IDFC First bank Prepaid carc is the one which is offered and distributed in marketplace by Fampay itself. No doubt, fampay is trying for more mergers with different partners as well as banks in the coming years.