Karbon Card Raises $15 Million From Olive Tree, Harmony, Avenir And Others

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Karbon Card
Karbon Card Raises $15 Million From Olive Tree, Harmony, Avenir And Others

Karbon Card (Karbon), a fintech company specializing in corporate cards, has raised $15 million in a Series A led by Olive Tree Capital, Harmony and Avenir Growth Capital, and said it aims to become India’s first Neobank designed especially for the corporates.

Existing investors Ramp, Mercury and Orios Venture Partners also participated in the current round. The new round of funding comes in less than four months of the company raising a Pre-Series A of $12 million in September last year. With the current round, the total funding raised by Karbon stands at around $32 million. The startup, which counts Y Combinator as its early backer, will use funds to step up product development, hiring plans and operations as it transitions into India’s first corporate Neobank this year.

“We are extremely delighted to close our Series A because it means we now have the resources to build an even more compelling product and service to all our current and future customers. We now have more than 2000 companies as happy customers and are determined to grow this by many times this year,” Karbon’s co-founder Amit Jangir said.

Founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha, Karbon is an expense management platform for small businesses, enterprises, corporates and startups. From small cash management, expense report automation, prepaid cards for business expenses, travel and expense management, employee flexible benefits, international travel cards to a digital marketing expense card, Karbon’s centralised platform, helps businesses improve their efficiency and productivity by multi-folds.
Karbon closed 2021 with a monthly GTV (gross transaction value) of $30 million and expects to grow the GTV to $200 million per month jn 2022 as credit demand picks up pace.
“Over the past five years, we have evaluated emerging corporate card players globally and ultimately backed Ramp in the USA. The adoption for corporate cards in India is still nascent compared with developed markets, and as the market leader, we expect Karbon to introduce corporate cards to tens of thousands of Indian companies in the near term and beyond,” said Nick Eliovits, Managing Partner of Olive Tree Capital.
While Karbon’s core benefit remains to provide quicker and hassle-free credit card access for corporate spends, there is growing interest in safety and demand for secured products and services and hence the transition to Neobank becomes a natural progression. With the latest funding, Karbon is in the position to become the largest player in the expense management segment.

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The Bengaluru headquartered company offers startups with four key benefits such as credit of up to Rs 5 crore 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 with $50,000 or SaaS products.The FinTech, which makes money mostly off interchange fees, aims to solve a major problem for small businesses and startups by replacing the use of personal c ..