Karbon Card, a fintech company offering corporate cards, has raised growth capital from accelerator Y Combinator, which counts Airbnb, Doordash, and Stripe as its portfolio companies. Karbon has been selected in Y Combinator's summer batch of 2021, representing one of the few companies from India.
Karbon will use the funds to step up its product development, hiring plans and operations. Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, Karbon has now joined YC, which previously groomed global corporate card start-up Brex, which achieved unicorn status in record time.
The Bengaluru-headquartered company offers start-ups with benefits such as credit of up to Rs 5 crore, with no personal guarantee or fixed deposits, seamless payments transactions through corporate cards to its customers, rewards specific to the start-ups' requirements and expense management through WhatsApp in a very intuitive way.
With over 1,500 clients in less than two years, the company has managed a 35 per cent month-on-month growth in revenues despite the pandemic that slowed down corporate spending to a large extent. However, as the economy starts reviving, Karbon expects faster growth.
The company has raised $3.5 million so far from investors such as Orios Venture Partner and US-based 2AM VC and is in the process of raising a more significant round in the next few months.
"We figured that it was challenging for the early-stage startups to avail corporate cards from the banks wherein the banks ask for 110% deposit guarantee, a personal guarantee from founders, and a huge amount of documentation and time. That was the Eureka moment for us. We thought if we offered the corporate cards with no fixed deposits, personal guarantees and built a process in just five minutes, then we would solve a lot of problems," said Pei-fu, Cofounder, Karbon.
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