Karbon Card Startup raises Rs 55 crore debt finance
Karbon Card startup that provides corporate cards and is developing into a neobank for new-age start-ups and small and medium companies, has secured Rs 55 crore in debt financing from Northern Arc Capital, UC Inclusive Credit (UCIC), and Oxyzo Financial Services.
UCIC, situated in Bengaluru and incubated by Unitus Capital, is a non-banking financial firm focused on social impact that is registered with the Reserve Bank of India, whereas Oxyzo is OfBusiness‘ lending arm and is supported by Softbank.
Meanwhile, Karbon plans to use the cash to provide start-ups and small businesses with corporate credit cards that may be used as a flexible source of expansion finance. Over 2,000 start-ups and small businesses use the Bengaluru-based company’s corporate cards and cost management systems.
Karbon Card Startup
Karbon has raised around $32 million in equity from global and marquee investors such as Ycombinator, Ramp, and Olive Tree Capital, among others. This is the company’s first-ever debt round.
Karbon is a corporate payment platform and an upcoming neobank for small enterprises, corporates, and start-ups, founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar. It provides Visa-issued corporate cards (both virtual and physical) and allows the finance department to effortlessly oversee and track expenses throughout the whole organization.
Karbon provides four key benefits to start-ups, including cash credit of up to Rs 25 lakh with no personal guarantee or fixed deposits, seamless payments transactions through corporate cards to its customers, and rewards tailored to the needs of start-ups, such as AWS credits at a 12% discount or SaaS products. Finally, it enables very intuitive spending management through WhatsApp.