Fintech startup FamApp is raising a new funding round that will facilitate the exit of one of its co-founders Kush Taneja, media reports said citing unidentified people.

Existing investor Elevation Capital is leading the funding round of $15 million in FamApp that will comprise of primary and secondary capital, the Entrackr reported.

The secondary component is expected to comprise of the larger share to enable Taneja's exit. The report said that there were ongoing differences between Taneja and another co-founder Sambhav Jain, leading to the former's exit, without specifying the reasons.

FamApp, formerly Fampay, had raised a significant $38 million as part of its Series A funding round in 2021 amid the frenetic funding activity in India's startup ecosystem.

The fintech startup, which had positioned itself as teen focused, however, has struggled to raise fresh capital since then.

The Series A funding was led by Elevation Capital as well as new investors General Catalyst, Rocketship VC and Greenoaks Capital. Existing investor Peak XV Partners had also participated in that funding round.

The Bengaluru startup, founded in 2019 by Taneja and Jain, both alumni of IIT Roorkee, had secured around $5 million in seed funding in March 2020.