Fintech startup from India, Kodo, which specializes in corporate cards has received $8.75 million in funding in its seed round. The investors in this round included Brex, which is a similar corporate card provider in the UK, Goat Capital, and others.
The newly raised funds will be used for increasing its teams in engineering, sales, and operations as the company plans big growth in its Indian business over the next few months.
“We believe that founders should be free from the anxiety of where their money is, how much is being spent, and how to optimize their cash flows,” said Deepti Sanghi, co-founder and CEO, Kodo
“We are seeing accelerating adoption of Kodo cards from businesses ranging from VC-backed startups to SMBs, across sectors. With this capital raise, we are well-positioned to build on that momentum, strengthen our team and expand our customer base,” Sanghi added
The company was started in 2019 and during the pandemic period it has witnessed a growth of 45% month on month over the last 12 months which has helped its transaction volumes to jump by 83 times, the company said.
The idea of corporate cards is to first push them into the hands of business owners and founders and since they are usually very busy and much sought after by banks and financial firms, Kodo has ensured that the onboarding process would be very smooth and fast as well.
More cards can then be issued (either physical or virtual) and these can then be used by the founders and business owners themselves or they can get it issued to their employees who can use it for various expenses and all the expenses can be tracked via a single expense management platform in real-time.
“Kodo has built an amazing foundation in India and we are looking forward to putting the full weight of our experience behind them,” said Henrique Dubugras, co-CEO, Brex. “We were immediately impressed with Deepti and her team’s deep understanding of the future of finance and are incredibly excited about the next phase of their business.”
For Brex, it is likely to be a strategic investment into a new and growing market like India while Brex would bring in the knowledge and experience and Kodo would bring in an existing, fast-growing market as well as technology. These synergies would augur well for both companies shortly.