Gurgaon-based fintech startup Fyp announced the pre-launch signing-up of their money management product for the GenZ segment between the age group of 11-18 years of age. The Neo bank will go online by end of July but has already started getting traction among the target audience, which also includes young parents between the age group of 35-45.
"Last week we have opened the pre-launch signing-up for Fyp and we were excited to see 15,000 entries in our waitlist section already. Amongst all the entries received till 15th July, 10,000 people stand a chance to win an absolutely free prepaid card" said Kapil Banwari, Founder and CEO of Fyp.
The startup aims to change the pocket money management concept in India, and help parents to make their kids develop with financial literacy concept and become financially independent at an early age. The kids, by using the Fyp app, can do all financial transactions, both online and offline, securely through the Fyp app and Fyp Prepaid Card.
It aims to bring unique gamification features to teach financial literacy concepts to GenZ, one of which includes chores where parents can assign tasks by using gamification inside the app for their kids against monetary prizes. Fyp will have soon launch features where children can earn money through communities and invest their savings with the consent of their parents to build a small fortune for their future needs like college fees, mobile phones, bikes, dream travel etc.
"The product architecture is based on four strong pillars -- earning, saving, spending, and investing. We want the kids not just to have a basic understanding of finance, but a deep practical knowledge of financial matters much before when they start their first job" added Banwari.
The fintech firm aims to have 1 million users of the Neo-banking app by the end of calendar year. The company has developed its own Banking as a Service (BaaS) platform to support its product. The startup, going forward, plans to lend its BaaS platform to other B2C fintech firms and develop it as a separate revenue stream.
In April 2021, Fyp raised $ 2 million in a seed funding round from angel investors to expand the team and marketing initiatives. The company is in discussions to raise further round of funds with some major capital investors in extension to the current seed round and also plans to raise an investment of around $ 20 million by the end of the calendar year.
Fyp will utilise funds to hire human assets, strengthen the technology and on marketing initiatives. It also aims to take its product to other major cities of India and make its technology infrastructure agile and robust.
India has around approximately 25 crores children between the age group of 11 to 18 years of age who are dependent on their parents for any digital transactions. Most of them have almost no exposure towards financial literacy concepts. The segment is getting a lot attention for fintech firms and investors. Recently, Bangalore-based FamPay, which is also building a neo-bank for kids has recently raised $38 million in Series A round.