Singapore-based startup CardUp has raised $1.7 million in a seed funding round that was led by Sequoia India and early-stage fund Seedplus. As per CardUp, this fresh flow of funds will be used to expand its product offering in the SME space with new credit and cash flow management solutions.
“Unlike existing card payment solutions, CardUp does not require participation from the recipient of funds. This has enabled the company to scale up quickly with an average monthly user growth rate of 41 percent since it launched in late 2016,” the startup said.
“Individuals and businesses can improve their cash flow by tapping into pre-approved credit lines on their card, whilst banks and payment networks are able to increase overall credit card spend by capturing a new market segment,” Nicki Ramsay, Founder and CEO of CardUp, said.
CardUp is a Fintech startup which acts as a middleman for business payments. Their payment platform assists with card payments to organizations that don’t accept this mode of payment, such as landlords or government payments. Transactions made through their platform go to the recipient’s bank account through bank transfer. To receive the payments, the recipients don’t have to enroll themselves on the CardUp platform. This process lets customers maximize the card benefits like extended credit terms and earning of reward points on big payments like rent to the landlord or taxes and insurance premiums.
Pieter Kemps, Principal at Sequoia Capital India (Singapore), said CardUp solves the common problem of how people can use credit cards for some of the largest payments they make.
“Many large companies are built on a simple yet unique insight on how to solve a common problem. Why can’t we use our credit card for some of the largest payments we make? [CardUp] set out to solve this, and the immediate customer adoption shows there is a need for a platform like this,” Kemps said.
As per Ramsay, CardUp is focusing on SME’s in Singapore, however in the future it will look toward extending this to other countries.