UCIC, incubated by Unitus Capital, is an impact focussed non-banking financial 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 and enable startups and SMBs with corporate credit cards that they can use as flexible growth capital.
“We believe that partnering with these stalwarts goes a long way in consolidating our credibility and presence in the new-age banking ecosystem. We will be allocating these funds to expand our customer base and become the preferred neo-banking partner for all start-ups and SMBs in India,” said Kartik Jain, cofounder of Karbon.
This is the first debt round the Bengaluru-based company has raised. So far, Karbon has raised around $32 million in equity from global and marquee investors such as Ycombinator, Ramp, and Olive Tree Capital amongst others. The company said debt round from financing firms like Northern Arc Capital assumes strengthens the trust factor that Karbon has built over the past three years amongst startups and SMBs. Also, raising debt is crucial considering the high growth that the company has seen.
“Karbon being a new-age corporate bank is supporting small and medium enterprises (SME’s) and startups in their entrepreneur journey and SME/ MSME Finance is one of the impact-focused areas as identified by UCIC,” UC Inclusive Credit Private Limited managing director, Abhijit Ray, said.
Karbon currently provides corporate cards and expense management solutions to over 2000 startups and SMBs at present. Founded in 2019 by Kartik Jain, Pei-fu Hsieh, Amit Jangir, and Sunil Kumar, Karbon is a corporate payment platform and an upcoming neobank for small businesses, corporates and startups. It provides Visa-issued corporate cards (both virtual and physical) and empowers the finance team to easily control and track expenses for the whole company.
Karbon offers startups four key benefits including credit of up to Rs 25 lakh in cash with no personal guarantee or fixed deposits, payments transactions through corporate cards to its customers, offers rewards specific to the startups’ requirements and also offers expense management through WhatsApp.
Karbon has recently launched a banking product for such small businesses called Karbon PayOut to make vendor and salary payments easier and faster.