How Fampay's Rs 200 Cr Bet on Fintech for Teenagers Fell Flat

• Fampay raised $38 million in 2021, targeting teens under 18, but struggled due to weak business fundamentals.
• The fintech firm faced a major setback when IDFC Bank ceased its payments partnership in February 2023, leading to a loss of users and financial instability.
• In March 2023, Fampay pivoted to a UPI-focused app, but still reported significant losses, with Rs 120 crore lost in FY23.
• Despite entering the top 10 UPI-based payment apps, Fampay's financial woes continued, with mounting expenditures and a high burn rate.
• The company's future may hinge on a potential selloff, as it struggles to sustain momentum in the competitive fintech landscape.

Source: Entrackr