Corporate card provider and emerging neobank Karbon Card (Karbon) has raised ₹55 crore in a debt financing round from Northern Arc Capital, UC Inclusive Credit Private Limited (UCIC) and Oxyzo Financial Services., the company has announced.
Karbon will utilise the funds to empower and enable start-ups and SMBs with corporate credit cards they can use as a flexible growth capital, it said.
UCIC, incubated by Unitus Capital, is an impact-focussed Non-Banking Financial Company registered with Reserve Bank of India, based out of Bengaluru, while Oxyzo is the lending arm of OfBusiness and is backed by Softbank.
This is the company’s first ever debt finance round. So far, it has raised $32 million (₹240 crore approximately) since inception, backed by investors such as Ycombinator, Ramp, and Olive Tree Capital, amongst others.
Founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar, Karbon is a corporate payment platform and an upcoming neobank for small businesses, corporates and start-ups.
Asset to the finance team
It provides visa-issued corporate cards (both virtual and physical) and enables the finance team to control and track expenses for the whole company. It currently provides corporate cards and expense management solutions to over 2,000 start-ups and SMBs.
Kartik Jain, Co-Founder of Karbon, said, “We believe that partnering with these stalwarts goes a long way in consolidating our credibility and presence in the new-age banking ecosystem. We will be allocating these funds to expand our customer base and become the preferred neo-banking partner for all start-ups and SMBs in India.”
UC Inclusive Credit Private Limited (“UCIC”) Managing Director, Abhijit Ray said, “Karbon being a new age corporate bank is supporting small and medium enterprises (SMEs) and start-ups in their entrepreneur journey and SME/MSME Finance is one of the impact focussed areas as identified by UCIC.”
Karbon has also recently launched a banking product for small businesses called Karbon PayOut to make vendor and salary payments easier and quicker.
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