KarbonCard, a fintech company that provides corporate cards to Indian startups has raised an undisclosed amount in growth capital from accelerator Y Combinator.
The Bangalore based company will use the funds to step up its product development, hiring plans and operations.
Until now, the startup has raised $3.5 million from investors such as Orios Venture Partner and US-based 2 AM VC and is looking forward to raising more funds in the coming months.
Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, the company enables access to credit up to INR 5 crore without fixed deposits or personal guarantee offers rewards such as AWS credits, expense management via WhatsApp, and seamless payments transactions through corporate cards.
The YC tag would help the company create more value in the Indian startup ecosystem, and help mitigate the biggest challenge of convincing startups about the existence of a product like Karbon.
Hershel Mehta, Co-founder at 2 AM VC, said, “The rapidly growing Indian startup ecosystem needs solutions like Karbon Card. Moreover, there are more than 40 million small and medium businesses in India. Karbon is well-positioned to serve this huge untapped market,”.
The company has accumulated over 1,500 including companies like CRED, Unacademy, MyGate, Pharmeasy, Nazara (IPO-ed recently), BlackBuck, and Bizongo. It has also crossed INR 500 crores annualized volume run rate on cards.
Despite the pandemic reducing corporate spending, its revenue has grown at 35 per cent monthly. Recently it also merged with the Visa network after the RBI barred Mastercard from issuance of any new credit cards.