Bengaluru based Fintech company Karbon Card which provides corporate cards to Indian start-ups has raised an undisclosed sum in growth capital from accelerator Y Combinator (YC) on Monday.

Karbon Card will use the funds to step up its product development, hiring plans and operations.

Karbon said in the press release that it feels a YC tag “would help the company create more value in the Indian startup ecosystem, and help mitigate the biggest challenge of convincing startups about the existence of a product like Karbon.”

Karbon Card was founded in 2019 by Pei-fu Hsieh, Amit Jangir, Kartik Jain and Sunil Sinha in Bengaluru. It is a corporate bank without the fees, limits or waiting. The goal of the company is to empower Indian startups by creating the right financial products starting with a high-limit corporate credit card which includes no personal liability, unlimited benefits and no fixed deposits.

“We figured that it was challenging for the early-stage start-ups to avail corporate cards from the banks wherein the banks ask for 110 percent deposit guarantee, a personal guarantee from founders, and a huge amount of documentation and time. That was the Eureka moment for us. We thought if we offered the corporate cards with no fixed deposits, personal guarantees and built a process in just five minutes, then we would solvea lot of problems,” said Hsieh, Co-founder, Karbon.

Till now, Karbon has raised $3.5 million from investors, including Orio Venture partner and US-based 2 AM VC. It aims to raise more funding over the next few months. It has crossed Rs 500 crore annualised volume run rate on cards and has Unacademy, Pharmeasy, Nazara, Bizongo, CRED, MyGate, BlackBuck among its 1500 customers.

Karbon’srevenue has raised by 35 percent month-on-month, despite the Covid-19 pandemic. It recently integrated with Visa’s network after the RBI banned Mastercard from issuing any new credit cards.

Its competitors include global players like Brex, which was also incubated by YC, Ramp and Divvy.