Akudo, a learning-focused neobank for teenagers, on Monday said it has raised $4.2 million (around Rs 31 crore) in funding led by Y Combinator, JAFCO Asia, Incubate Fund India, and AET Fund.
The round also saw participation from Tribe Capital, Cabra Capital, and angels like Lalit Keshre, co-founder of Groww; Rohit Taneja, co-founder of Decentro; Anup Singh, ex-Axis Bank, ICICI Bank; Romeen Sheth of Metasys; Sriram Krishnan, ex-Spotify, Tinder; and Mohit Daga; among others.
The startup said it will use the funds to expand its team and further refine its product offering to reach millions of financially under-prepared and under-served teenagers in India.
“This capital will help us hire the right team and build in-app intelligence and features which will make financial learning more enjoyable for teenagers. We want every teenager to own their Akudo card as soon as they turn 13 and learn crucial lessons early on,” Lavika Aggarwal, co-founder of Akudo, said.
Currently, Akudo has over one lakh registered customers and has recorded a 75% week-on-week growth in transaction volumes. The startup has also issued 25,000 plus cards across 360 cities in India.
Founded by Aggarwal, Sajal Khanna, and Jagveer Gandhi, Akudo provides personalised prepaid Visa cards to teens and promotes a financial-first learning environment to build a habit of saving at an early age.
Earlier this year, children-focused startup Junio, which provides a digital pocket money smart card, raised $1 million (around Rs 7.28 crore) in a funding round from a clutch of angel investors.
Other startups offering financial products for children and teenagers have raised capital as well. These include FamPay, which also counts Kunal Shah as an investor, and YPay, backed by Venture Catalysts.