Karbon Card, that offers corporate cards to small businesses and startups, has raised $15 million in a Series A funding round, led by Olive Tree Capital, Harmony, and Avenir Growth Capital. Existing investors Ramp, Mercury, and Orios Venture Partners also participated in the fund raise.
The new round of funding comes in less than four months of the company raising a Pre-Series A of $12 million in September last year. With the current round, the total funding raised by Karbon stands at around $32 million.
The startup, which counts Y Combinator as its early backer, will use funds to step up product development, hiring plans and operations as it transitions into India’s first corporate Neobank this year.
Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, Karbon Card offers corporate cards to small businesses, enterprises, corporates and startups. It offers varied expense management features such as petty cash management, expense report automation, prepaid cards for business expenses, travel expense management, among others.
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“We now have the resources to build an even more compelling product and service to all our current and future customers,” said Karbon’s Co-founder Amit Jangir. “We now have more than 2000 companies as happy customers and are determined to grow this by many times this year.”
Karbon closed 2021 with a monthly GTV (gross transaction value) of $30 million and expects to grow the GTV to $200 million per month in 2022 as credit demand picks up pace.
“Over the past five years, we have evaluated emerging corporate card players globally and ultimately backed Ramp in the USA. With a world-class leadership team and remarkable traction to date, we are excited to lead Karbon’s Series A,” said Nick Eliovits, managing partner of Olive Tree Capital. “
The company offers startups with four key benefits: credit of up to ₹5 crore with no personal guarantee or fixed deposits, seamless payments transactions through corporate cards, rewards specific to a startup’s requirements such as AWS credits with $50,000 or SaaS products ,and expense management through WhatsApp in an intuitive way.
Karbon makes money from interchange fees and 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.
Also, Read This: Bengaluru-based Karbon Card Raises USD 1.2 Million From Orios Venture