Bengaluru, May 17, 2022: Karbon Card (Karbon), India’s largest and fastest growing corporate card provider and an emerging Neobank for the new-age startups and SMBs, has raised INR 55 crore in a debt financing round from Northern Arc Capital, UC Inclusive Credit Private Limited (“UCIC") and Oxyzo Financial Services.
UCIC, incubated by Unitus Capital, is an impact focussed Non-Banking Financial Company registered with Reserve Bank of India, based out of Bangalore, while Oxyzo is the lending arm of OfBusiness and is backed by Softbank.
Karbon would use the funds to empower and enable startups and SMBs with corporate credit cards that they can use as a flexible growth capital.
The debt round from leading financing firms like Northern Arc Capital assumes significance as it strengthens the trust factor that Karbon has built over the past three years amongst startups and SMBs. Also, raising debt is important at this point for Karbon considering the high growth it has witnessed in just one year post Covid.
Karbon currently provides corporate cards and expense management solutions to over 2000 startups and SMBs at present.
This is the first debt round the Bengaluru-based company has raised. So far, Karbon has raised around $32 million in equity from global and marquee investors such as Ycombinator, Ramp, and Olive Tree Capital amongst others.
Founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar, Karbon is a corporate payment platform and an upcoming neobank for small businesses, corporates and startups. It provides Visa-issued corporate cards (both virtual and physical) and empowers the finance team to easily control and track expenses for the whole company.
Kartik Jain, cofounder of Karbon, said, “We believe that partnering with these stalwarts goes a long way in consolidating our credibility and presence in the new-age banking ecosystem. We will be allocating these funds to expand our customer base and become the preferred neo-banking partner for all start-ups and SMBs in India.”
Karbon offers startups with four key benefits such as credit of up to Rs 25 lakh in cash with no personal guarantee or fixed deposits, provides seamless payments transactions through corporate cards to its customers, offers rewards specific to the startups' requirements such as AWS credits at 12% discount or SaaS products. Lastly, it helps offer expense management through WhatsApp in a very intuitive way.
On the development, UC Inclusive Credit Private Limited (“UCIC”) Managing Director, Abhijit Ray said, “Karbon being a new age corporate bank is supporting small and medium enterprises (SME’s) and startups in their entrepreneur journey and SME/ MSME Finance is one of the impact focused areas as identified by UCIC.”
Karbon intends to help startups and thousands of SMBs for whom the banking experience is highly broken as banks don't consider them large enough to be served.
Karbon has also recently launched a banking product for such small businesses called Karbon PayOut to make vendor and salary payments easier and faster.