Karat Financial

Karat Financial provides financial tools and credit cards targeting content creators. It offers its services through a financial platform and utilizes its own underwriting model to assess the creditworthiness of individuals. This model analyzes a creator’s cross-platform success, considering factors such as social reach, audience engagement, mix of platforms, and monetization models.

The business credit card helps content creators build their credit history. It requires full payment of a customer’s balance at the end of each billing cycle and reports it to credit bureaus. Karat Financial does not charge any fees on credit cards and makes money through interchange fees. It also offers cash back rewards and redeemable points on purchases, which content creators can use for unique rewards, such as industry events, spending on Amazon, travel, dining, camera equipment, gym memberships, apparel, electronics, and cosmetics. In addition, it provides access to accounting tools and services, with pricing tailored to the specific services and requirements of each client's business.

Key customers and partnerships

Karat Financial provides its credit cards in partnership with Cross River Bank.

Fundings and financials

In July 2023, the company raised USD 70 million in Series B funding , consisting of USD 30 million in debt and USD 40 million in equity. The debt funding was provided by TriplePoint Capital, while SignalFire led the equity financing. It had planned to use the fresh capital to develop the personal credit card, scale its existing products, and provide content creators with tools for better money management.