Real-time credit solution provider KarmaLife has reportedly netted $2.2m in its pre-Series A funding round.
The investment was led by Artha Venture Fund, an India-based venture firm aimed at supporting local companies, according to a report from New York Tech. Other investors to the round include Netgraph Investment, LV Angel Fund and Singularity Ventures.
Several angel investors also joined the round, including CDC Group managing director Abhinav Sinha, Global Equity London CEO Amit Jain, Vodacom South Africa managing director Balesh Sharma, Hesa founder Vamsi Udayagiri, Mytrah Energy CEO Vikram Kailas and ex BharatPe CBO Prateek Agarwal.
With the funds, the FinTech company hopes to bolster product development, hire more staff and form more partnerships.
KarmaLife was founded by Rohit Rathi, Naveen Budda and Badal Malick to
It currently boasts over 130,000 users and is looking a ten-fold user growth in the next 12 months. KarmaLife has also experienced a 40% month-over-month growth in credit disbursement since July 2021, it said.
The KarmaLife platform offers gig workers with subscription-based finance. Users access digitally integrated real-time credit to better manage their day-to-day cash flows and become financially resilient.
KarmaLife co-founder Rohit Rathi told New York Tech, “We were surprised at the sheer lack of appropriate and sustainable credit solutions for low-income working populations. We are on a mission to solve this using technology, and have built a KarmaScore framework using alternative data, and a very scalable deployment model for employers and gig-platforms.
“We are creating a winning eco-system that brings together Financial Institutions, Employers, and Gig workers, to drive a new and transformative business model. We are already seeing ~85% repeat rates with our product along with significant levels of retention boost in an otherwise very high churn segment. This recent round of funding will help us to accelerate our vision of Financial Inclusion for Blue Collars in India.”
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