Karbon raises $12M in pre-Series A round
KarbonCard, a fintech startup, announced that it has raised $12 million in a pre-Series A round from US fintech unicorn Ramp, Rainfall Ventures, Roka Works, and Y Combinator, among others.
The startup plans to use the freshly funds to establish its product development, undertake recruitment to double its headcount in the next six months, and support its operations.
Karbon had earlier raised $3.5 million from Orios Venture Partner and US-based venture capital company, 2AM VC.
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 startups.”
Established in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain, and Sunil Sinha, Karbon Card is targeted at small businesses and startups. It allows startups to access credit of up to Rs 5 crore without fixed deposits or personal guarantee, gives rewards like AWS credits, expense management via WhatsApp, and hassle-free payments transactions via corporate cards, among others.
In August, the startup had raised an undisclosed amount in growth capital from Y Combinator, which it stated it will utilize to ramp up its product development and to recruit more people.
Karbon claims to have crossed Rs 500 crore annualized volume run rate on cards and counts CRED, Unacademy, MyGate, Pharmeasy, Nazara, BlackBuck, and Bizongo among its 1,500 customers.
Commenting on the investment, Karbon’s 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 startups and SMBs with a $20 billion market opportunity at present.”
The company stated it has grown its revenue 30 percent month on month, in spite of the pandemic that affected corporate spending. It anticipates 35 percent month-on-month growth in the next 8-12 months, it added.
Karbon has emerged as a strong player in the fintech segment with its innovative solutions. I’m sure the company will continue to reach new heights of success in its journey ahead. My best wishes to the team of Karbon.Shishir Gupta, Founder and CEO, StartupLanes
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