Fintech Startup FypMoney raises $2 million from Liberatha Kallat & Others
FypMoney is a digital bank for teenagers that provides financial literacy and the convenience of safe financial transactions. It allows making online and offline payments with Fyp UPI & Debit Card without having to open a bank account.
The startup, which is owned and operated by Pocket Payment Technologies Pvt Ltd, aims to promote the use of digital money transactions among teenagers and plans to launch its own Fyp Money app in June 2021.
“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.” says, 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.”
Quick online prepaid account opening and online KYC in 3-5 minutes; instant issuance of virtual debit cards with the option to order physical cards for offline payments; and, above all, simple UPI transactions are among the main product features.
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 about 250 million people between the ages of 11 and 19, with an estimated 15-20 percent of the population using cell phones, which is increasingly growing. Although there was always a need for such a service, Kapil Banwari claims that the change in actions during the COVID months heightened it.
The FypMoney app claims to be built around four key pillars: earning, prudent spending, saving and investing. The overall product creation takes place with all financial considerations in mind, in order to provide full financial literacy exposure to teenagers.