KarmaLife Secures Rs 44 Crore Funding from Krishna Bhupal’s Family Office and Artha Venture Fund


KarmaLife, a financial solutions provider catering to the gig and blue-collared workforce, has successfully raised Rs 44 crore in an extension to its pre-Series funding round. The funding was led by Krishna Bhupal’s family office and existing investor Artha Venture Fund, along with participation from other prominent investors such as Net Graph Investments, Singularity Ventures, LogX Venture Partners, and several others.

Founded in March 2020 by Rohit Rathi, Naveen Budda, and Badal Malick, KarmaLife operates on a business-to-business-to-consumer (B2B2C) model and has established partnerships with over 50 organizations, including major names like Flipkart, Elastic run, Uber, Porter, and Delhivery. Through these partnerships, KarmaLife provides employees with the option to access their pay-out before payday, helping them manage their finances more effectively.

Rohit Rathi, Co-Founder & CEO of KarmaLife, expressed the company’s plans for the fresh capital, stating that it will be utilized to scale the business, expand into new geographies, launch additional products, and raise awareness about their offerings. Rathi emphasized the company’s mission to drive financial inclusion and provide alternatives to predatory lending, with a focus on transforming the financial lives of millions of blue-collar workers.

KarmaLife’s impact is already evident, as it claims to have positively influenced the lives of 2.70 lakh workers to date. The startup offers personalized, subscription-based credit products, including Earned Wage Access and dynamic Line-of-Credit, powered by their proprietary real-time credit scoring system known as ‘KarmaScore.’ Currently, KarmaLife serves over 1,00,000+ blue-collar workers through its platform and aims to expand its reach further to make a broader impact.

Krishna Bhupal, Chairman of his family office, expressed his belief in KarmaLife’s vision and praised the team’s ability to create a network-based approach for transparent and sustainable credit access. Bhupal highlighted the long-term potential of KarmaLife’s business, not just in India but also in global markets. He emphasized the impact of the company’s mission, connecting hundreds of millions of blue-collar and gig entrepreneurs to affordable credit solutions.

Earned Wage Access (EWA) is one of the key offerings provided by KarmaLife, allowing individuals to access a portion of their earned but unpaid salary before payday. This disrupts traditional pay cycles and predatory lending models, while also incentivizing employees to stay longer with their organizations. Companies partnering with KarmaLife have reported a remarkable 37% increase in retention within six months, leading to improved productivity.

Anirudh A Damani, Managing Partner of Artha Venture Fund, expressed his enthusiasm for supporting KarmaLife and praised their commitment to empowering the blue-collar and gig workforce. Damani emphasized the significance of lending infrastructure in shaping India’s economic future and the alignment of KarmaLife’s mission with the vision of fostering an inclusive financial landscape.

KarmaLife’s efforts have gained recognition beyond investors’ support. The company was recently honored as the winner in ‘The Financial Inclusion’ category at the NASSCOM India Fintech Awards 2023. This achievement reinforces KarmaLife’s position among the top fintech companies evaluated by NASSCOM for their significant contributions to financial inclusion.

The World Bank’s Consultative Group to Assist the Poor (CGAP) partnered with KarmaLife to conduct research on financial inclusion for gig workers and refine KarmaScore for larger ticket/longer tenure loan products in 2022, further validating the startup’s innovative solutions.

In conclusion, KarmaLife’s recent funding round signifies a major milestone for the company as it secures substantial financial support from Krishna Bhupal’s family office and Artha Venture Fund, among others. With a focus on empowering the gig and blue-collared workforce and promoting financial inclusion, KarmaLife is poised to expand its operations, introduce new products, and make a lasting impact on the lives of millions of workers in India and beyond.