Karbon Card, a fintech offering corporate cards, has raised $12 million (Rs 88.8 crore) in a Pre-Series A funding round from US-based fintech Unicorn Ramp, Rainfall Ventures, Roka Works, Y Combinator, and other global investors. The startup plans to use the funds to scale its product development, hiring plans and operations as it expects to double its headcount to 60 over the next six months.
Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, Karbon was selected by Y Combinator in the Summer 2021 batch and had earlier raised $3.5 million from Orios Venture Partner and US-based 2AM VC.
The Bengaluru-headquartered venture offers start-ups with four key benefits including credit of up to Rs 5 crore with no personal guarantee or fixed deposits, seamless payments transactions through corporate cards, rewards specific to the requirement of the start-ups, while also offering expense management through WhatsApp.
The fintech, which makes money mostly from interchange fees, aims to replace the use of personal credit cards for company usage with corporate cards as a personal credit card could affect an individual's credit score apart from creating reimbursement hassles and a mixup of personal and corporate expenses.
The start-up has managed to get 1,500 clients in less than two years of its launch, while reporting a 30 per cent month-on-month growth in revenues despite the pandemic that slowed down corporate spending to a large extent. Going ahead, it expects 35 per cent month-on-month growth in the next 8-12 months.
"We are solving a major challenge faced by Indian start-ups and small businesses while availing corporate cards from the banks that ask for 110% deposit guarantee, personal guarantees and massive amount documentation. Karbon’s corporate cards eliminate all these hurdles and provide solutions in just five minutes," said Karbon’s Co-founder and CEO, Pei-fu Hsieh.
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