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Teen-focused fintech startup FamPay said on Wednesday it has raised $38 million in a Series A funding round, led by Elevation Capital and existing investor Sequoia Capital India.

Other investors such as Y Combinator, Venture Highway, Global Founders Capital, as well as new investors including General Catalyst, Rocketship VC, and Greenoaks Capital also participated in the round, the startup said in a press release.

The Bengaluru-based firm will use funds from the latest round to build its leadership team and fuel further growth, which includes capturing more users via marketing efforts, and launching new features on the platform, the company told YourStory in an interview.

Some new features and products the startup said it is set to roll out in the coming weeks include financial literacy games that can help teens familiarise themselves with financial terms; new FamCards; and an in-app commerce feature that will enable consumer brands looking to target the teenage segment sell directly on the FamPay app.

Brands the startup has explored affiliate marketing partnerships with include edtech startups Unacademy and Front Row, and Man Matters, a health and wellness company for men, among others, the startup told YourStory.

“With around 40 percent of the Indian population being below 18, every year millions of new teenagers will start using their first smartphone, and FamPay envisions becoming their go-to brand. By connecting with the young, we are building an early relationship with future adults most brands eventually want to tap, making FamPay the gateway for brands to target GenZ,” Sambhav Jain, Co-founder of FamPay said in a press statement.

The startup has over two million users on its platform currently, averaging 100 percent month-on-month growth. FamPay’s app and its numberless card help teens carry out transactions online, as well as offline, with consent from their parents. The app does not require a separate bank account to be opened.

FamPay says its goal is to create a generation of financially aware and savvy individuals who understand the fundamentals of personal finance, and can take important financial decisions independently.

Excluding the latest round, the startup, founded in 2019 by two IIT Roorkee graduates, has raised $4.9 million in funding so far, from investors including Sequoia, Venture Highway, Soma Capital, and Y Combinator.

“India today has a sizeable population of 250 million adolescents, and we believe that catering to this unserved audience with innovative products contextualised to their needs and behaviours will create a very valuable business”, said Mridul Arora, partner at Elevation Capital.

FamPay’s seed round also saw participation from prominent angel investors such as Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau.