The new financing, announced Wednesday (June 17), came in the form of a $15 million Series A round led by Galaxy Ventures and a $125 million debt facility provided by CIM.
According to a news release, the new capital will help Kara launch an “elevated tier card for the most demanding clients,” debut a corporate card and payment platform, “and to continue reinventing the global travel concierge experience.”
Karta bills itself as a card designed to address a persistent problem for international travelers: they have credit histories in their own countries, but are “credit-invisible” in the U.S.
“Karta is the premium credit card built to solve this for international travelers to the US, and is offered through more than 80 private banks and wealth managers,” the release said.
“Approval for a Karta card takes minutes with no SSN or ITIN required, and offers credit lines up to $200,000. The Karta card provides the benefits of a Visa premium card including zero FX fees, points, and access to invite-only events.”
The release notes that the funding comes amid a strong period of growth for Karta, with its total payment volumes and revenue increasing four-fold quarter over quarter.
“We set out to build the ultimate tech-forward credit card for the global traveler, and are thrilled to see the rapid increase in private banks working with us to offer this card to clients,” said Freddy Juez, one of the company’s founders.
“We also appreciate the support of our partners and investors who will help Karta expand our reach and AI offering that makes travel and spending convenient and frictionless for users.”
In other credit-related news, a recent PYMNTS Intelligence report, “Secured Credit’s Next Turn: Unlocking Growth With Dynamic Funding,” finds secured credit is expanding beyond its old role as a niche product for consumers rebuilding credit.
The report argues that tighter access to unsecured credit, along with pressure on debit revenue, is making secured credit more relevant for banks, FinTechs and consumers.
“The challenge is that older secured credit models often make the product harder to use than it needs to be,” PYMNTS wrote last week.
“They can require consumers to lock away cash, manage several balances and wait for delayed updates, all of which can weaken confidence in a product designed to help them move forward.”
