Companies

Karbon Card raises growth capital from Y Combinator

Our Bureau Mumbai | Updated on August 30, 2021

The fintech company will use the funds to step up its product development, hiring plans and operations

Karbon Card, a fintech company providing corporate cards to Indian start-ups has raised an undisclosed sum in growth capital from accelerator Y Combinator (YC).

The fintech company offers corporate cards. YC counts Airbnb, Doordash, and Stripe as its portfolio companies. Karbon has been selected in YC’s summer batch of 2021, representing one of the few high potential companies from India, it said.

Also read: Karbon Card raises $2 million seed-funding led by angel investors

Karbon 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. The fintech company 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, the Bengaluru headquartered company is now joining YC which has previously groomed global corporate card startup Brex, which has achieved unicorn status. “We figured that it was challenging for the early-stage start-ups 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 Hsieh, Co-founder, Karbon.

Karbon also feels that a YC tag would help the company create more value in the Indian start-up ecosystem. The company has accumulated over 1,500 clients in less than two years, managing a 35 per cent month-on-month growth in revenues.

Published on August 30, 2021

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