The fintech firm, founded by Pei-fu Hsieh and Amit Jangir, seeks to empower Indian startups with an interest-free corporate credit card that includes rewards specific to startups such as AWS credit, MaketMyTrip/Uber/Hubspot/Freshworks discounts, etc. and expense management software among others.
The funding round was backed by angel investors, including Kunal Shah (Cred), Amrish Rau (Ex PayU), Jitendra Gupta (Jupiter), among others. Karbon Card said it would use the fresh funding for product development, operations, and market expansion.
Building a startup and pursuing one’s passion can be quite challenging. Along the journey, many founders wish the banks could be more appreciative and supportive of the startups’ ambitions, said Hsieh, who is also the firm’s CEO.
“Unfortunately, the banks’ position to protect their customers’ savings at all cost make their requirements and policies rigid and unfriendly to startups… Our vision is to empower all startups to achieve more through a Karbon Card. We will strive to improve your cash flow with credit, help you to spend wiser and manage better through our suite of products,” Hsieh added.
Through Karbon Credit, startup founders can quality for credit even with no personal guarantee and without a need for securing any fixed deposits. The rewards are also specific to startups and have a value of over $50,000. Additionally, Karbon Credit offers an intelligent expense management tool that enables founders to understand where company expenses are spent and the changes over time.
Karbon Card requires no fixed deposit, no personal guarantee, and can be issued in less than 24 hours. It does not have any hidden interest expenses or fees whatsoever, the fintech firm said.
Commenting on his investment, Jitendra Gupta, founder of Jupiter, said Karbon Card has been embraced by man Indian startups within a short span of a few months.
“We see massive potential for this sector in India. I, myself, am not just an investor but also an avid user of Karbon Card,” Gupta added.
Fintech companies have caught the interest of investors over the years. Recently, Bharat PE secured $75 million in a Series C funding round led by investors Ribbit Capital and Coatue Management. BharatPe has disbursed about $14 million “short-term” loans to over 20,000 merchants in the last seven months.