Karat Financial secures $70m in mix of equity and debt financing
US-based fintech Karat Financial, which offers a financial services platform and business credit cards for digital creators and influencers, has closed a Series B funding round raising a total of $70 million in a mix of equity and debt financing.
Karat Financial raises $70m
The round consists of $30 million in debt financing from TriplePoint Capital and $40 million in equity led by SignalFire with participation from existing investors including Union Square Ventures, CRV and GGV, as well as new investors such as Commerce Ventures and a number of angel investors.
With the new funding round, Karat Financial has now raised more than $100 million to date, following a $26 million Series A round in 2021.
Founded in 2019 and headquartered in Los Angeles, Karat Financial provides financial tools to digital creators to help them manage and grow their business. Offerings include credit based on future revenue streams as well as newly launched tools such as bookkeeping and tax services.
New business card launch
Karat Financial has also launched a new business card in partnership with Visa in a bid to help creators establish their personal credit history and improve access to capital when they need it.
Benefits of the new card include personal credit building, purchase protection, the ability to track business write-offs, simplified taxes and access to events and collaborations for creators.
“By leveraging their history with Karat, creators now have an easier path to capital when applying for mortgages, car loans and other essential financial products, which improves chances of approval and securing favorable terms for crucial life endeavours,” the company says.
