Earning-linked Credit Platform KarmaLife Raises Rs 44 Cr In Funding
KarmaLife, a Bengaluru-based gig workers-focused financial services startup, has secured $5.3 million (Rs 44 crore) in an extended pre-Series A funding round co-led by Krishna Bhupal’s family office and existing investor Artha Venture Fund.
Net Graph Investments, Singularity Ventures, LogX Venture Partners and other angel investors also participated in the funding round.
As per the startup, the freshly raised funds will be used for product development and expansion into new geographies.
KarmaLife | Earning-linked Credit Platform
Founded by Rohit Rathi, Naveen Budda, and Badal Malick in 2020, KarmaLife is an earnings-linked financial solutions provider for the gig and blue-collared workforce.
Operating on a business-to-business-to-consumer (B2B2C) model, KarmaLife offers personalized, subscription-based credit products such as Earned Wage Access(EWA) and dynamic Line-of-Credit, based on a proprietary real-time credit scoring system called ‘KarmaScore.’
Speaking about the development, Rohit Rathi, Co-founder and CEO of KarmaLife, said,
“We welcome this funding round, which reaffirms our investors’ alignment with KarmaLife’s mission. Together, we aim to drive financial inclusion and offer alternatives to predatory lending. Our unwavering goal is to transform the financial lives of millions of blue-collar workers.”
The startup offers Earned Wage Access (EWA) or earnings-linked credit and other small-ticket, short-term credit products to resolve the “month-end” crisis for gig workers. This allows users to flexibly borrow money during medical and other unforeseen emergencies more easily
EWA is a financial product that gives people access to a portion of their earned but unpaid salary any time before payday. It focuses on providing a small-ticket credit linked to future earnings.
The Bengaluru-based gig workers-focused financial services startup currently serves over 1,00,000 blue-collar workers through its platform. It counts organizations like Flipkart, Porter, Elastic Run, Uber, and Delhivery, as partners.
Commenting on the development, Krishna Bhupal, Chairman of his family office, said,
“KarmaLife is creating a long-term business that is underserved not only in India but in markets globally. We share the business’ growth plans as a portfolio investment, and more importantly, the impact of the business connects a few hundred million blue-collar and gig entrepreneurs into a network-based approach to transparently access credit which is sustainable and affordable.”
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