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by sunil_loanmeet 1765 days ago
Hi HN! We are a rather unusual team of six founders (Pei, Amit, Sunil, Jack, Bo, and Kartik) spread across India and China, building Karbon Cards (https://www.karboncard.com/). We help companies in India get instant access to a corporate card.

We came across this problem separately while Amit was doing VC and Sunil was running his own fintech. We saw that a startup with $1M in the bank was facing mind-numbing issues in getting a card with a $5k limit. After speaking to finance managers in other companies of all ages and sizes, we realized the problem was massive. Seeing Brex at the same time growing so quickly gave us the kick to go out and figure out a way to solve this issue.

Before Karbon card, our customers were either using personal cards for company's card expenses or put a fixed deposit at a bank to get an equivalent credit limit on a card. Both options are painful in the long run: using personal cards leads to compliance issues, and putting a fixed deposit for a card locks your growth capital. Since we are a free product (we make money on interchange fees) and onboarding is simple, it is better to get a no-hassle corporate card from us.

Today we have a solution wherein a company completes a 10 minute application process and gets access to a virtual credit card right away. We are known across India’s startup community for quick card issuance (10 minutes vs 5 weeks), 10x higher credit limits compared to banks, and self-serve controls that help reign in unnecessary spending. We’ve also launched a vendor payment product that makes banking less cumbersome moving towards our longer term vision of becoming the only financial product a company would need to run it’s business aka India’s first corporate Neo bank.

Companies today use our product to run their marketing campaigns, infrastructure spends, pay SaaS vendors and take care of employee reimbursements. We work with clients who are as young as 2 weeks old to publicly listed companies in India. That alone shows the depth of the problem and the need for a company like us to help make corporate spending easier--it is the last thing a company should be blocked on.

Some of our customers are creatively using our card in ways that we have not even imagined. Our customer, Rajat, runs a marketing agency, and he issued himself 120 Karbon cards. He gave these cards to his clients and asked them to top up their cards to run Facebook ads. Another customer, Akshay, uses his card and payment product to process salaries and make vendor payments.

Please share your thoughts and questions and comments!

8 comments

Me and my current co-founder did face this issues or atleast were discussing about this issues. It is a big problem. Also, problem is india is just simply incorporating a company.

It becomes even more difficult when both the founders do not live in India. Relevant problem, huge market. Good luck! We will probably be a customer if you guys execute well. One of the things that I love about brex and if you could replicate would set you apart is customer experience. If you build some very customer centric that would completely change the game.

Thank you for your valuable feedback.

It is difficult to incorporate a company in India, especially if you need it to make a subsidiary of an Indian company.

We are planning to add bank accounts in the near future. Our existing customers use virtual bank accounts accounts to transfer salaries and vendor payments. https://karboncard.freshdesk.com/support/solutions/articles/...

In terms of our approach to customers, we are customer centric, and we try our best to get fast refunds and resolve transaction issues ASAP. We have used our test cards to do transactions on customer's behalf.

When you need a card for an Indian company, do let us know at support@karboncard.com. We will get you the card on the same day, and you would love the experience.

why do you want to incorporate in india?does your product has some regulatory requirement?(fintech/govt. sector) otherwise you can sell your products/services in india from whereever it is easier for you to incorporate or i am missing something?
As of now, we can only offer our product to Indian companies. This is a regulatory requirement for corporate cards.
One of things I noticed that you guys have 6 founders. Could you elaborate a bit on that, how do you manage the role, segregate responsibilities and manage conflicts if any. I am asking just out of curiosity. I have noticed that in Indian start up you generally find alot of founder for eg. Housing.com
Assigning Roles is not so hard, as there are so many hats to wear when you are a founder - Operations, Sales, Account Management, Product, Lead Generation, Tech, and Investor relations.

Since we are six guys, we bring multiple ideas on the table, and sometimes it is hard to choose the right one for the company. Like every company, we manage conflicts.

I think we would see more than two cofounders in Indian companies, as companies mature. Deepinder from Zomato promoted multiple folks as cofounders at the later stage of the company. https://economictimes.indiatimes.com/tech/startups/zomato-ap...

Congrats Amit and Team on launch. I think vision is good. Are you repeat founders? Since you have 6 founders from different countries, do you think this may cause conflict in future while scaling? What are your thoughts?

Are you guys located in US/India and China?

Yes, a couple of Karbon founders are repeat founders.

3 founders are from India, and 3 are from China. It is not easy to launch a fintech product in China, but we would be able to overcome that since half the team is in China.

I currently use open.money to manage our startup. What's your pitch to move to Karbon? Also, none of the virtual cards worked with AWS. Have you checked if your cards work with AWS?
Hello Sagar,

Our cards work on AWS. On monthly basis, our cards process around Rs. 5 Crores worth of transactions on AWS. Plus, your company might qualify for flat 2% discount on your AWS bills.

There are other features as well that you would love when you switch to Karbon. Unlike other companies, we are focused on cards, and our cards are the best in the industry.

Send an email with your coordinates ( email and phone number ) to sales@karboncard.com, and we can then share additional details with you.

This looks great.

I run single person company (proprietorship), do you think KarbonCard can help me in running my business in any way? or it is designed for bigger companies?

We have a number of proprietorship as customers, and they like us. They use our card for digital marketing spends, SAS payments, and telecom payments. Few of our customers do not want to put their main bank's debit card on online portals, and they prefer to put our cards as it comes with numerous controls.

Since our card is free of cost, there is nothing to lose and everything to gain.

If you do not have a CIN, please enter your GST number in the field.

Below are the steps to apply for the card. https://karboncard.freshdesk.com/support/solutions/articles/...

If you face issues, do reach us via email at support@karboncard.com or via whatsapp at 828-756-9687.

Congratulations! Could you tell me what has been the most challenging part of operating in Indian Fintech ecosystem?
The most challenging part in the beginning is finding a good partner bank.

Once you found a banking partner, you need to win trust of your potential customers, as customers only want to work with trusted financial entities even when you are giving credit.

Once the above two issues are sorted, the compliance issues drown fintech startups. There is always something new one needs to do every month.

How’re you handling the MasterCard suspension? Are you able to onboard new accounts now?
Hello Sudhir. We recently switched to VISA, and we are giving VISA cards to our new customers. Life is good !
I believe, Kodo[1] is also another YC Company doing something similar - Brex for India.

1. https://www.kodo.in

That is correct. The problem and market is there for them and other players to take.

Do let us know what you think of us. We would love to provide Karbon card to your company - https://valinor.earth/ .

Based on a quick glance at the name, I guessed your company sold some kind of carbon offset credits.
My cofounder, Amit, came up with the name Karbon (Carbon)- the basic element of organic matter or life.

We give minimum of 0.5% cashback of prepaid cards, and one of our customers suggested us to donate that cashback to charities. I liked your idea of carbon offset credits. It is something we could consider doing in later stages of our company.