Akudo, a learning-focused neo-bank for teens, bagged $ 4.2 million in a funding round led by Y Combinator, JAFCO Asia, Incubate Fund India, and AET Fund.

As the startup has about a strength of 12 workforce, it plans to use the funds to pump its workforce to 50 in 12 to 18 months. Additionally it plans to throw its funds into its product offering which will help it to serve one million families in the coming year.

As a matter of fact, it’s currently targeting tier 1 and tier 2 cities in India.

A bit about the startup is that it was established last year by Lavika Aggarwal, Khanna, and Jagveer Gandhi. From the time of its inception, it’s been into offering Visa cards for teens as well as catering to a financial oriented learning environment through its features like auto save and others that help nurture a saving habit.

Moreover, it claims that it’s been delivering these cards to more than 350 cities across India.

At present there are more than 100,000 users hooked on its platform, atop of its transaction volumes that hike up to 75 percent over a weekly basis.

Teens under its reign are rewarded through a gamified incentive system when they show results of excellent financial behavior. Also, there’s an app for this incentive that has various levels that helps teens progress through each no sooner they earn badges which basically gamifies practical learning about money. To further enhance their skills in finance, the startup helps them inculcate awareness, practice and habit formation.

This it does through integration of a lot of bite-sized videos that teach vital financial concepts within the banking experience for teenagers.

As Lavika puts it, Akudo is crafting a concept of learning-first banking implying how financial learning is seamlessly indicated right when and where one banks.

Furthermore, an Akudo account has dual categories with one for saving and the other for spending according to a personalized finance author’s advice.

On that account, it has tied up with Visa and RBL Bank to promote banking experience for teenagers.

It also offers a one-stop technology solution under the three dimensions of learning about money management such as awareness, practice and habit building.