fintech: Karbon Card raises Rs 55 crore debt financing from Northern Arc, UCIC and Oxyzo
UCIC, incubated by Unitus Capital, is an impact-focused non-bank finance company registered with Reserve
, while Oxyzo is the lending arm of OfBusiness and is backed by Softbank. Karbon said it would use the funds to provide startups and SMEs with corporate credit cards that they could use as flexible growth capital.
“We believe that partnering with these pillars goes a long way to cementing our credibility and presence in the new era banking ecosystem. We will allocate these funds to expand our customer base and become the preferred neo-banking partner for all start-ups and SMEs in India,” said Kartik Jain, co-founder of Karbon.
This is the first round of debt the Bengaluru-based company has raised. So far, Karbon has raised approximately $32 million in equity funding from global and renowned investors such as Ycombinator, Ramp and Olive Tree Capital, among others. The company said the round of debt from finance firms like Northern Arc Capital means bolstering the trust factor that Karbon has built over the past three years among startups and SMEs. In addition, debt is crucial given the strong growth that the company has experienced.
“Karbon, being a new-era corporate bank, supports small and medium-sized enterprises (SMEs) and startups on their entrepreneurial journey and SME/MSME finance is one of the impact-focused areas identified by UCIC,” said the Managing Director of UC Inclusive Credit Private Limited. , said Abhijit Ray.
Karbon currently provides corporate cards and expense management solutions to over 2000 startups and SMBs today. Founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar, Karbon is an enterprise payment platform and upcoming neobank for small businesses, enterprises, and startups. It provides Visa-issued corporate cards (both virtual and physical) and allows the finance team to easily control and track company-wide expenses.
Karbon offers four key benefits to startups including credit of up to Rs 25 lakh in cash with no personal collateral or fixed deposits, payment transactions through corporate cards to its customers, offers rewards specific to the needs of startups and also offers expense management via WhatsApp.
Karbon recently launched a banking product for these small businesses called Karbon PayOut to make supplier and salary payments easier and faster.