How Much Did Karbon Raise? Funding & Key Investors

Karbon has successfully raised funds through multiple rounds, attracting a diverse group of investors. The platform offers corporate credit cards tailored for entrepreneurs, providing a range of financial benefits.

Continue reading to delve into the details of Karbon's funding journey and the investors who support this innovative financial platform.

What Is Karbon?

Founded in 2019, Karbon is a fintech company based in Bangalore, Karnataka, India. The company specializes in providing corporate credit cards tailored for Indian entrepreneurs, offering interest-free options and various financial benefits.

Karbon was established by Pei-fu Hsieh, Amit Jangir, Kartik Jain, and Sunil Kumar. The founders aimed to simplify financial management for startups and small businesses through innovative credit solutions.

With a team of 51-100 employees, Karbon continues to grow, focusing on delivering seamless financial services and expanding its reach within the entrepreneurial community.

How Much Funding Has Karbon Raised?

1. Seed Round
   • Amount Raised: Not publicly disclosed
   • Date: June 2019
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To kickstart the company's operations and develop its initial product offerings.
2. Seed Round
   • Amount Raised: $2M
   • Date: March 2020
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the team and enhance product development.
3. Seed Round
   • Amount Raised: $1M
   • Date: April 2020
   • Lead Investors: Orios Venture Partners
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations and increase market reach.
4. Seed Round
   • Amount Raised: $1.2M
   • Date: May 2021
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To further product development and customer acquisition.
5. Seed Round
   • Amount Raised: $12M
   • Date: October 2021
   • Lead Investors: Y Combinator
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate growth and expand the product suite.
6. Series A
   • Amount Raised: $15M
   • Date: February 2022
   • Lead Investors: Avenir, Harmony Partners, Olive Tree Capital
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support the company's expansion and enhance its market presence.
7. Debt Financing
   • Amount Raised: ₹550M
   • Date: May 2022
   • Lead Investors: Northern Arc, UCIC, Oxyzo Financial Services
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To empower startups and SMBs with corporate credit cards for flexible growth capital.

Total Amount Raised: $31.2M + ₹550M

Current Valuation: Not publicly disclosed

Key Investors

• Y Combinator
  • Details: A renowned startup accelerator based in Silicon Valley, Y Combinator has been instrumental in the growth of numerous successful startups.
  • Investment Focus Areas: Technology, fintech, healthcare.
  • Notable Investments: Airbnb, Dropbox, Stripe.
• Olive Tree Capital
  • Details: A growth equity firm that focuses on investing in technology and fintech companies.
  • Investment Focus Areas: Technology, fintech, growth-stage companies.
  • Notable Investments: Various growth-stage technology companies.
• Avenir Growth Capital
  • Details: A growth equity firm that invests in high-growth technology and fintech companies.
  • Investment Focus Areas: Technology, fintech, growth-stage companies.
  • Notable Investments: Various growth-stage technology companies.
• Orios Venture Partners
  • Details: An early-stage venture capital firm that has backed several successful startups in India.
  • Investment Focus Areas: Technology, fintech, consumer internet.
  • Notable Investments: Ola, Pharmeasy, GoMechanic.
• Northern Arc Capital
  • Details: A financial services platform that provides access to debt for underbanked individuals and businesses in India.
  • Investment Focus Areas: Debt financing for microfinance, small business loans, affordable housing, agriculture.
  • Notable Investments: Various microfinance institutions and small business lenders.

What's Next for Karbon?

Karbon is poised to capitalize on the burgeoning demand for fintech solutions among startups and SMBs. With the recent ₹55 crore debt financing, the company aims to expand its customer base and introduce new products like Karbon PayOut. This positions Karbon to become a leading neo-banking partner in India, offering flexible growth capital and comprehensive financial services.

Future fundraising opportunities are likely as Karbon continues to grow. Building on the trust established with investors like Northern Arc and UCIC, the company may attract additional debt or equity rounds to support its expansion. However, challenges such as intense competition and regulatory hurdles could pose obstacles along the way.

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