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Exclusive: FamApp’s turnaround with profitability, new round and co-founder exit

Entrackr · 1m ago

Medial

Exclusive: FamApp’s turnaround with profitability, new round and co-founder exit Fintech startup FamApp (formerly FamPay) seems to have made a significant turnaround, as the company turned profitable and reached Rs 90–100 crore in revenue in the last fiscal year (FY25). Moreover, the six-year-old firm is in late-stage talks to raise secondary and primary capital from existing investors, according to three sources familiar with the matter. “Elevation Capital is leading a $15 million round, primarily comprising secondary capital, for FamApp,” said one of the sources on condition of anonymity. “The secondary component will facilitate an exit for co-founder Kush Taneja and potentially some seed-stage investors.” According to sources, ongoing differences between co-founders Taneja and Sambhav Jain over several months is a key reason for Taneja’s exit. FamApp last raised $38 million in its Series A round four years ago. So far, it has raised $42.7 million from investors like Elevation Capital, Y Combinator, Peak XV, and angels such as Kunal Shah and Amrish Rau. According to sources, Elevation and other investors will primarily acquire Taneja’s stake in the new round. The renewed investor confidence in FamApp comes after the company established stable and sizable revenue channels. “FamApp closed FY25 with Rs 90–100 crore in revenue and turned profitable, recording a profit before tax of Rs 10–12 crore,” said the second source, who wished to remain anonymous. While FamApp’s FY25 performance will be officially confirmed once it reports consolidated numbers, figures shared by sources indicate a major turnaround. In FY24, the company generated Rs 25 crore in revenue but reduced its losses by nearly 90%. FamApp earns revenue through premium upgrades like FamX Ultra (Rs 699), ATM withdrawals (Rs 29), video KYC (Rs 99), autosave feature (Rs 29), and nominal charges on loading of the teen wallet. Moreover, the platform sells premium skins that users can apply as stickers within the app. It also sells codes for gaming (like PUBG) and shopping, targeting the interests of its teen user base. During the first quarter of FY25, FamApp (by Trio) launched Namaspay, a UPI app for foreign travelers in India. It charges a Rs 1,650 one-time fee, 4% on loading, and 1% on withdrawals. According to sources, these revenue channels performed well for FamApp during the fiscal year ending March 2025. Queries sent to FamApp, Elevation, Sambhav Jain and Kush Taneja didn’t elicit any response. The sustained turnaround will be a welcome respite for investors for a concept they had high hopes from. Profitability also ensures the firm is better positioned to adapt to new changes in the fast evolving fintech space, especially the payments space. The exit of Co-Founder Taneja seems to have been handled well, with a cash exit for his labours over the years. Six years after starting with Jain, it is not odd for him to relook his own ambitions and interests vis-a-vis the direction the firm has taken. In fact, many would consider him lucky to be exiting on what appears to be friendly terms.