Karbon Raises $12 Mn In Pre-Series A

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Karbon Card, a fintech offering corporate cards, has raised $12 million (INR 88.8 crore) in a Pre-Series A round from US-based fintech Unicorn Ramp, Rainfall Ventures, Roka Works, Y Combinator, and other global investors.

Ramp is a New York-based spend/budget management app or corporate charge card start-up that went on to become a Unicorn with a valuation of $3.9 billion in less than two years. Ramp’s investment in Karbon Card is an evidence of a boom in the corporate card segment in India. The startup plans to use the funds to step up its product development, hiring plans and operations. It expects to double its head count to 60 over the next 6 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.

On the latest fund raising, Karbon’s Co-founder and CEO, Pei-fu Hsieh said, “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. Karbon’s corporate cards eliminate all these hurdles and provide solutions in just five minutes.”

To this Karim Atiyeh, Co-founder and CTO at Ramp said, “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.”

The Bengaluru headquartered company offers startups with four key benefits such as credit of up to INR 5 crore with no personal guarantee or fixed deposits, provides seamless payments transactions through corporate cards to its customers, offers rewards specific to the startups’ requirements such as AWS credits with $50,000 or SaaS 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.

Using personal credit cards for company usage affects personal credit score, reimbursement hassles and creates confusion to segregate personal and corporate expenses. With over 1500 clients in less than two years of its launch, Karbon has reported a 30% 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 35% month-on-month growth in the next 8-12 months. Additionally, considering the recent RBI’s Mastercard ban, Karbon has been quick to integrate with Visa network to provide uninterrupted experience to their customers in a 40 million strong untapped SMB segment in India.



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