Modak
“Can a youth-focused fintech become the default financial operating system for families by combining debit cards, allowances, and AI-driven financial education on a sponsored-bank infrastructure?”
Founded2022
HQMenlo Park, CA, USA
FoundersMadhu Yalamarthi
Total raised$13.8M
Latest roundSeed
IndustryFintech / Consumer banking
The story
Founded in 2022, Modak set out to build a financial operating system for families, initially centered on teen debit cards, allowance management, and cashback rewards. The platform evolved to emphasize financial literacy and AI-powered tools for youth and family spending. A major infrastructure milestone came in mid-2025 when Modak transitioned its sponsor bank relationship from Lewis & Clark Bank to Legend Bank, N.A., signaling a deliberate move toward greater banking stability and direct bank partnerships as the company scales.
Product timeline
2022
Modak founded as a fintech platform focused on teen/family financial tools, offering youth debit cards and family spending management.· banking
2023
Launched integration with Dosh for cash-back rewards, enabling transaction-linked offers for cardholders.· banking
2025
Transitioned sponsor bank relationship to Legend Bank, N.A. (Texas-based community bank) as of June 2025, replacing prior banking infrastructure.· banking
2025
Formally announced partnership with Legend Bank, N.A. via press release, citing real-time reconciliation and secure deposit infrastructure for parent accounts and youth debit card program.· banking
The stack
2 layers disclosed in Modak’s embedded-finance stack
Banking / BaaS
Legend Bank, N.A.
Sponsor bank
in the full report
Accounting gap: none
1 more provider across 1 layer, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.