FamPay stutters, with no revenue model in sight
The pocket money app is struggling to make money or find investors. Will becoming a neobank help?
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Editor's note: Four-year-old FamPay is at a crossroads. Less than two years ago, led by founders Sambhav Jain and Kush Taneja, still in their early 20s, the Bengaluru-based pocket money app was being courted by some of the largest venture capital investors in town. In June 2021, it raised $38 million from marquee investors such as Elevation Capital, Sequoia and General Catalyst in one of the largest series A rounds ever seen in the Indian startup circuit. Jain and Taneja were also among the youngest founders in their cohort at the prestigious California-based startup incubator Y Combinator in 2020. Cut to 2023, FamPay is struggling to find backers for its next round of funding, according to three industry executives aware of the matter, all of whom asked not to be named. One of the three executives says the firm has been in the market since mid-2022 but has failed to generate any solid offers. FamPay was valued at around $150-180 million in its 2021 round and founders Taneja and Jain are said to be keen on raising funds at a higher valuation. …
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