BackKarbon Card raises $15 million in series-A round
Karbon Card will use the funds to step up product development, for hiring, and operations as it moves to becoming a neobank for corporates
PremiumNEW DELHI: Karbon Card, that offers corporate cards to small businesses and startups, has raised $15 million in a Series A funding round, led by Olive Tree Capital, Harmony, and AvenirGrowth Capital. Existing investors Ramp, Mercury, and Orios Venture Partners also participated in the fund raise.
The company had raised $12 million in pre-series A funding in September last year. With this, Karbon Card has so far raised around $32 million.
The Bengaluru-based startup will use the funds to step up product development, for hiring, and operations as it moves to becoming a neobank for corporates.
Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, Karbon is an expense management platform for small businesses, enterprises, corporates and startups. It offers services like small cash management, expense report automation, prepaid cards for business expenses, travel and expense management, employee flexible benefits, international travel cards and digital marketing expense card to its corporate clients.
The company offers startups with four key benefits: credit of up to ₹5 crore with no personal guarantee or fixed deposits, seamless payments transactions through corporate cards, rewards specific to a startup's requirements such as AWS credits with $50,000 or SaaS products ,and expense management through WhatsApp in an intuitive way.
"While Karbon’s core benefit remains to provide quicker and hassle-free credit card access for corporate spends, there is growing interest in safety and demand for secured products and services and hence the transition to Neobank becomes a natural progression," the company said in its statement.
“We are extremely delighted to close our Series A because it means we now have the resources to build an even more compelling product and service to all our current and future customers. We now have more than 2000 companies as happy customers and are determined to grow this by many times this year," said Jangir.
Karbon’s monthly GTV (gross transaction value) stood at $30 million at the end of 2021 and the company expects to grow it to $200 million per month in 2022 as credit demand picks up pace.
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