FamApp (formerly FamPay) has made a sharp U-turn in its journey—from a struggling teen-focused fintech to a profitable business with ₹90–100 crore in revenue in FY25. Sources close to the company reveal that FamApp is now in late-stage talks to raise $15 million, largely through secondary transactions led by Elevation Capital.
The new funding round will likely facilitate the exit of co-founder Kush Taneja, who has reportedly been at odds with fellow co-founder Sambhav Jain over strategic differences. While Taneja’s full exit is yet to be independently confirmed, insiders suggest Elevation and other existing investors will acquire most of his stake.
FamApp’s comeback is a significant milestone in India’s fintech landscape. Once the poster child for teen-focused neobanking, the company saw its ambitions falter—spending over ₹200 crore without sustainable returns in earlier years. However, FY25 marked a turning point, with the firm not only growing its topline by nearly 4X from FY24’s ₹25 crore but also posting a profit before tax of ₹10–12 crore.
Revenue Renaissance
FamApp’s monetization strategy has been key to its revival. The company earns through a mix of microtransactions and value-added services such as:
- FamX Ultra premium membership (₹699)
- ATM withdrawals (₹29)
- Video KYC verification (₹99)
- Autosave features and teen wallet loads
- Digital goods like gaming codes and app skins
In early FY25, FamApp also launched Namaspay, a UPI-based product catering to foreign travelers in India. The product charges a ₹1,650 setup fee, along with 4% load and 1% withdrawal charges, and has shown promising uptake.
Funding & Investor Sentiment
FamApp last raised $38 million in its Series A four years ago. It has cumulatively raised $42.7 million from marquee investors including Elevation Capital, Y Combinator, Peak XV, and angels like Kunal Shah and Amrish Rau.
Despite early stumbles, investor confidence appears renewed, thanks to a clear path to profitability and diversified revenue streams. “They’ve proven their ability to monetize a Gen Z audience—something few in the fintech space have cracked,” said one source.
Leadership Transition
While Taneja’s exit may appear sudden, sources say the split has been relatively amicable, with the buyout structured to provide him with a cash exit after six years of building the business. For a co-founder to leave on profitable terms rather than amid crisis is a rare feat in the startup world.
The official confirmation on FY25 performance is awaited, but all signs point to FamApp entering a new chapter—leaner, profitable, and strategically focused.
As the fintech space evolves and competition intensifies, FamApp’s survival and success offer a template for pivoting with precision—and for knowing when to cash out gracefully.
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