[Funding alert] Fintech startup FypMoney raises $2M from angel investors
FypMoney app, a Gurugram-based fintech platform, recently raised $2 million seed funding round from angel investors including Liberatha Kallat, Mukesh Yadav, and Dinesh Nagpal.
Owned and operated by Pockket Payment Technologies Pvt Ltd, the startup aims at promoting the usage of digital money transactions for teenagers and is set to launch its exclusive Fyp Money app for teenagers in June 2021.
Kapil Banwari, Founder, FypMoney, said,
“The seed funds raised will be utilised on product development, team building, and executing marketing and growth plan. We are targeting one million users by the end of this financial year. And in the next three years, the plan is to acquire five million users. We would be raising another round of investment by the end of the year to achieve our five million user goal. At present, we are in the product development stage.”
Kapil Banwari, Founder, FypMoney
Liberatha Kallat, one of the angel investors, added,
"We liked the idea as this is capturing the segment which is not completely tapped and we see huge potential. The platform will help teenagers learn and find aspects of personal finance, empowering teenagers with their own accounts will create a new segment of users and open opportunities in the market. Once we see the penetration and usage, we plan to invest further to develop and enhance additional features in the platform.”
The key product features are easy online prepaid account opening and online KYC in 3-5 minutes; issuance of virtual debit card instantly with an option to order physical cards for offline payments and above all easy UPI transactions.
Sharing insights about the product, Kapil said, “Indian parents focus towards high-end child literacy. However, they often ignore financial education and literacy. With the FypMoney app, we wish to bridge this gap and help the parents to teach “financial literacy” and importance of wise savings, money management and financial discipline at an early age to their kids. With the help of this card, which is specially designed and is adapted as per teenagers’ requirements, children don’t have to depend on their parents for digital payments anymore.”
According to the startup, India has around 250 million population in the age group of 11- 19 years with an estimated 15-20 percent mobile phone users, which is rapidly increasing. While the need for such a service was always there, Kapil Banwari asserts that the shift in behavior in the COVID months elevated it.
The FypMoney app claims to be working to establish itself on four main pillars: earning, wise spending, saving, and investing. The overall product development is happening keeping in mind all the financial aspects are covered to give complete financial literacy exposure to the teenagers.