Fintech start-up Fyp wants to give Indian children financial knowledge
As a cost and management accountant, certified by the Institute of Cost Accountants of India (formerly known as ICWAI), finance is easy to Kapil Banwari. Moreover, being from a family of businessmen, he was, in some respects, he believes, driven to strike out on his own.
But he wanted to experiment and learn from businesses, so he joined ICC where he spent seven years in various financial roles.
It was at ITC when colleagues across all departments and functions sought him out for personal financial advice, tax reporting and investment management that he realized the magnitude of the financial literacy gap. – and he decided to do something about it.
Teaching kids is easier than teaching adults, Kapil realized, and focusing his efforts on building a platform that could help teach kids about finance seemed like the way to go. In 2021, he foundeda fintech startup for kids that helps them learn the ins and outs of the financial world from an early age.
Fintech for kids in India is a crowded space, especially with the likes of, and — and Fyp works on a similar concept and has the same goal.
The Fyp app interface
After all, the global neobank market is expected to grow at a compound annual growth rate (CAGR) of roughly 46.5% between 2019 and 2026 to reach $394.6 billion, from $18.6 billion, according to Zion. MarketResearch. And, with more than half of India’s population is under 18, this translates into a large addressable market for these new-age startups.
But Fyp’s USP lies in its financial literacy offer, where he educates kids on financial concepts through gamification and small video content.
To that effect, Fyp earlier this year acquired the edtech startupwhich will help it expand its user base via links with schools across the country.
“Fyp focuses on financial literacy and financial concepts, and is not just a tool for making payments,” Kapil said. Your story.
“We are on a banking mission for pre-teens and teens in every nook and corner of the country and provide them with a convenient means of banking.
Business model and traction so far
Fyp works like any other neobank – in addition to a banking layer. The Gurugram-based startup has partnered with YES Bank for its wallet services, and Visa for the online and physical card it issues to its users.
It derives most of its income from a interchange fee, that banks charge merchants for payment processing. The physical card – linked to the Fyp account – is issued at a nominal cost to those interested, although for online transactions the virtual card is sufficient, Kapil says.
Partner with brands which cater to children and provide them with a platform to market themselves on Fyp is another way the startup is generating revenue.
The fintech launched its MVP in September 2021 and its main product in December. Since then he has seen more eight lakh downloads on Android and iOS, with daily active users between 40,000 and 45,000. He has processed over 2.5 million transactions to date.
Fyp’s target audience is between 11 and 21 years old, like most teen-focused neobanks. Almost 70-75% of its user acquisition happened organically, said the startup.
Earlier this year, the startup raised a funding round of $2 millionand is currently in the process of raising its next round of investment.