1 min read.Updated: 24 Sep 2021, 04:34 PM ISTLivemint
Karbon plans to use the funds to step up its product development, hiring plans and operations. It expects to double its headcount to 60 over the next six months
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Corporate card fintech, Karbon Card has raised $12 million (or roughly ₹88.8 crore) as a part of its pre-Series A funding round from US-based fintech unicorn Ramp, Rainfall Ventures, Roka Works, Y Combinator, and other global investors.
Karbon plans to use the funds to step up its product development, hiring plans and operations. It expects to double its headcount to 60 over the next six months.
Founded in 2019, 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.
“Excited to be partnering with Ramp, the global corporate card leader, to build the most customer centric card platform for Indian startups and SMBs with a $20 billion market opportunity at present. We are solving a major challenge faced by Indian startups and small businesses while availing corporate cards from the banks that ask for 110% deposit guarantee, personal guarantees and massive amount documentation," said Karbon’s co-founder and chief executive officer, Pei-fu Hsieh.
“We are impressed with what Karbon has built so far and are looking forward to seeing them deliver more value for Indian SMBs and startups," said Karim Atiyeh, co-founder and chief technology officer at Ramp.
Bengaluru-headquartered, Karbon offers startups with four key benefits such as credit of up to ₹5 crore with no personal guarantee or fixed deposits, provides payments transactions through corporate cards to its customers, offers rewards specific to the startups' requirements such as AWS credits with $50,000 or software products. It also helps offer expense management through WhatsApp in a very intuitive way.
The fintech, which makes money mostly off interchange fees, aims to solve a major problem for small businesses and startups by replacing the use of personal credit cards for company usage with corporate cards.
With over 1500 clients in less than two years of its launch, Karbon is reporting 30% month-on-month growth in revenues, the company said.