KarmaLife Raises $2.2 Million In Pre-Series A

The funds will be utilized to further develop the product, expand team and improve employer partnerships

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KarmaLife, a real-time credit solutions provider for gig workers, raised $2.2 million in pre-Series A round, led by Artha Venture Fund (AVF). Netgraph Investment, LV Angel Fund, Singularity Ventures and angel investors. The fintech platform will utilize the funds for further product development, team expansion and employer partnerships.


Founded by Rohit Rathi, Naveen Budda and Badal Malick, KarmaLife has access to 130,000-plus users and is eyeing a 10-fold user growth in the next 12 months, said a statement.

"We were surprised at the sheer lack of appropriate and sustainable credit solutions for low-income working populations. We are on a mission to solve this using technology and have built a KarmaScore framework using alternative data and a very scalable deployment model for employers and gig-platforms. We are creating a winning eco-system that brings together financial institutions, employers and gig workers, to drive a new and transformative business model. We are already seeing over 85 per cent repeat rates with our product along with significant levels of retention boost in an otherwise very high churn segment. This recent round of funding will help us to accelerate our vision of financial inclusion for blue collars in India," said Rohit Rathi, co-founder, KarmaLife.

"In a time where the gig economy is expected to contribute significantly to India's GDP, KarmaLife is set to empower the segment's workforce. KarmaLife's credit solutions will introduce a sense of financial stability in an otherwise fragmented industry, which is bound to boost productivity. Moreover, the real-time credit access experience for the end-user also helps them overcome the enormous challenge of financial literacy," said Anirudh A Damani, managing partner, Artha Venture Fund.

KarmaLife serves Gig workers with subscription-based finance built on Digital Karma. It offers them digitally integrated real-time credit to better manage their day-to-day cash flows and become more financially resilient. They partner with employers/platforms to provide earned wage access and dynamic line of credit solutions to their workers based on their work history and other digital data, added the statement.