With 50,000 users, fintech startup muvin helps children and young adults gain financial independence

Teen-focused pocket money, digital finance, and neo-banking apps have been all the rage in the fintech industry over the past year. New companies are springing up every month to cater to this previously untapped target market, and the core of their genesis seems to be singular: financial inclusion.

While many fintech companies cater to the adult population, as well as geographically marginalized sections of India, there are very few opportunities for teenagers to explore finance. Prior to the proliferation of teen-focused financial platforms, most of the exposure teens had to fund was through banks that allowed them to open bank accounts run mostly by parents, or physical currency.

Vineet Gupta and Mukund Raowho both have teenage children, have struggled with the existing system.

“Our children’s underage bank accounts, through which we gave them pocket money, presented multiple challenges – from openness to being able for our children to use it freely, given the restrictions on ATMs or debit cards,” says Vineet. Your story.

When the duo assessed the situation on the ground, they realized that while the addressable market (TAM) was large, there were only a handful of platforms available that catered to teens.

They put in place muvina focused teenager pocket money app for college students and teens, which aims to make students financially savvy, teach them money management skills, and remove the complexities of “finance.”

“muvin’s vision is to improve the financial literacy of India’s 200 million young people while providing them with financial products tailored to their needs,” says Mukund.

The startup raised $3 million in a pre-Series A round led by WaterBridge Ventures in January this year, after raising more than $1.5 million in seed round from HNIs nationwide.

Although the youth-focused fintech space has yet to be fully leveraged as it is still in its infancy and growing, the sub-sector has disrupted fintechs in India, capturing a market that very few address themselves. India’s fintech sector is expected to touch the market size of $150-160 billion by 2025, according to a report by MAAS.

What he does

Bengaluru-based Muvin is a downloadable app that can be used by both parents and children. Parents need to download the app, create profiles for their kids, and then give them access.

Parents can use the app to transfer spending money, set tasks, and pay upon completion of each task, and can also track their children’s expenses.

Teens using the app, on the other hand, can spend money offline and online through a physical and virtual debit card. UPI and QR based payments are available for those who do full KYC. Users can also create savings goals for wishlist items and invest money in them each month.

The startup, like most in its industry, including FamPayand junioroffers short educational videos and written content to teach teens and children about finance and the practices associated with managing money, such as saving, investing, and taxes.

Vineet says that while muvin’s target audience is the 10-24 age group, anyone can use the platform.

“We believe the educational content we offer is relevant not only to our immediate target audience, but to anyone looking to start their journey in understanding basic finance,” he says.

business model

The startup currently does not charge users anything to access the platform; instead, it makes money from interchange fees incurred by merchants for card transactions.

Fampay, arguably the biggest player in the industry right now, has an e-commerce platform tailored to its target market, namely children, which is also a source of income for the startup, aside from interchange fees.

In terms of revenue, Mukund says, “We are hitting the expected numbers,” but did not further disclose exact counts. He added that the app currently has three lakh installs, with 80,000 active wallets that have done their KYC.

In total, the application has 50,000 users. Fampay has passed one million users, while Junio ​​has around half a million.

The startup says it aims to expand to one million users over the next 12 months and may raise additional capital this year to achieve scale.

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