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Bengaluru headquartered fintech company Karbon Card has raised $12 million (₹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.
The company offers corporate cards.The start-up 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 six months, it said.
Also read: Karbon Card raises growth capital from Y Combinator
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.
Ramp, one of the investing entities, 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.
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 start-ups and SMBs with a $20 billion market opportunity at present."
"We are solving a major challenge faced by Indian start-ups and small businesses while availing corporate cards from the banks that ask for 110 per cent deposit guarantee, personal guarantees and massive amount documentation," the Karbon Card CEO said.
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 start-ups.”
The Bengaluru headquartered company offers start-ups with four key benefits such as credit of up to ₹5 crore with no personal guarantee or fixed deposits. It also offers rewards specific to the start-ups' requirements such as AWS credits with $50,000 or SaaS products. It also helps offer expense management through WhatsApp.
Karbon has gained over 1,500 clients in less than two years of its launch and has reported a 30 per cent month-on-month growth in revenues.
It further expects 35 per cent month-on-month growth in the next 8-12 months.
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