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Y Combinator-backed Indian fintech eyes $300 mn business over economic bounce back

Y Combinator-backed Indian fintech eyes $300 mn business over economic bounce back

Karbon Card expects Gross Transaction Value of $25 million in December - a 10x growth compared to the same period last year when COVID-19 was at its peak.

Karbon Card specialises in corporate cards and has already onboarded 1,500 corporates and start-ups so far Karbon Card specialises in corporate cards and has already onboarded 1,500 corporates and start-ups so far

Y Combinator-backed Indian fintech firm Karbon Card is eyeing an annualised Gross Transaction Value (GTV) of $300 million by the end of this year on the back of a massive bounce back in the economy.

More importantly, the company expects a GTV of $25 million in December - a 10x growth when compared to the same period last year when COVID-19 was at its peak.  

The Bengaluru-based start-up, which was founded in 2019, specialises in corporate cards and has already onboarded 1,500 corporates and start-ups so far. It aims to double the number of clients in the next one year.

These cards replace the personal credit cards that are used by employees. The corporate cards can be used by the employees for a variety of services, including expenses related to official travel or various out-of-pocket costs. For the corporates, these cards allow them to track expenses on a real-time basis.  

"With our current growth rate (in terms of GTV), we could become one of the top 10 corporate card players (including banks) by Q1 of next year," said Kartik Jain, Co-founder of Karbon Card.

"As a corporate card company offering cards to corporates, we want to be known as a 'Bank for Corporates', and also to gain the status of a Neo Bank, going forward. We want to expand our partnership with other lenders to cater to the planned products and increased usage on the cards," added Jain.  

The start-up also gives collateral-free credit lines of up to Rs 10 crore, depending on the company's size. It also offers expense management through WhatsApp in a very intuitive way. Its primary focus customers are unicorns and Small and Medium Enterprises (SMEs).  

"Last year 45 start-ups joined the unicorn club, of which 20 are our clients", said Jain.

Since its inception, Karbon has raised close to $17 million from marquee investors, including Y Combinator, Ramp, Rainfall Ventures, Orios VP, and 2 AM.

Also Read: Corporate card provider Karbon raises growth capital from Y Combinator

Also Read: Y Combinator-backed Indian start-up Karbon raises $12 million in pre-Series A round