FamApp (formerly FamPay), a Bengaluru-based teen-focused fintech startup, has made a dramatic turnaround—closing FY25 with Rs 90–100 crore in revenue and turning profitable with a profit before tax (PBT) of Rs 10–12 crore, according to three sources familiar with the company’s financials.
This revival comes amid news that Elevation Capital is leading a $15 million round, largely comprising secondary capital, which will enable co-founder Kush Taneja and some early investors to exit.
“The secondary component will primarily facilitate a buyout of Kush Taneja’s stake,” said a source familiar with the deal. “Some seed-stage investors may also sell a portion of their holdings.”
🚪 Founder Exit Amid Internal Differences
Sources suggest Taneja’s exit stems from ongoing differences with fellow co-founder Sambhav Jain. While details remain unconfirmed, the separation appears amicable, with a cash exit allowing Taneja to realign his ambitions.
“Six years after starting FamApp together, it’s not unusual for founders to reassess their alignment,” added a second source.
📈 Financial Resurgence and Product-Led Monetization
FamApp’s financial performance marks a stark contrast to its FY24 results:
- FY24 Revenue: Rs 25 crore
- FY25 Revenue: Rs 90–100 crore (4X YoY growth)
- FY25 PBT: Rs 10–12 crore
- FY24 Losses: Reduced by ~90%
The company has built a diverse set of monetization channels targeting Gen-Z users:
- Premium offerings like FamX Ultra (Rs 699), ATM withdrawals (Rs 29), AutoSave, and Video KYC
- In-app cosmetic upgrades including premium sticker skins
- Gaming and shopping vouchers
- Namaspay, a UPI app for foreign travelers (Rs 1,650 one-time fee + transaction charges)
📊 Investor Confidence Rebounds
FamApp last raised $38M in Series A (2021), led by Elevation Capital, Y Combinator, and Peak XV. With profitability in place and revenue climbing, investor faith has returned.
“The upcoming round reflects investor belief in FamApp’s sustainable revenue model and renewed focus post-founder transition,” said a source.
The startup, which was once critiqued for burning Rs 200 crore on a teen fintech experiment, now seems better positioned to navigate the dynamic and highly regulated Indian payments space.
🔮 What’s Next?
As FamApp shifts toward maturity and operational discipline, it may explore:
- Wider fintech integrations
- Regulatory licensing (PPI/UPI aggregator etc.)
- New product verticals for Gen Z and Gen Alpha
With its turnaround story now gaining traction, FamApp joins the rare cohort of consumer fintechs that have hit profitability in under 6 years.
