CardUp, a Singapore-based card payments startup, has raised S$2.2m ($1.7m) capital in a funding round led by Sequoia India and early-stage fund SeedPlus.
This is the company’s first institutional investment round and it intends to use the proceeds to expand its payments and cash flow management platform to SMEs in Singapore.
CardUp allows customers to maximise individual card benefits to make large, recurring payments such as rent, employees’ salaries, and supplier payments using credit card.
With CardUp service, the SMEs can instantly access interest-free credit of up to 55 days, thereby increasing their access to working capital.
Contrary to existing card payment platforms, CardUp does not require participation from the funds recipient. This easy way of paying has enabled the company to achieve an average monthly user growth rate of 41% since its launch in 2016.
CardUp founder and CEO Nicki Ramsay 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.”
CardUp accepts all major credit cards and partners with leading firms such as United Overseas Bank (UOB), Citibank, Bank of China and Mastercard, among others.