Karta Raises $15 Million to Offer WhatsApp-Managed U.S. Credit Cards for Global Travelers
Miami-based startup Karta has successfully raised $15 million in Series A funding, led by Galaxy Ventures, along with securing a $125 million debt facility from CIM. The company aims to introduce a premium U.S. credit card service, managed primarily through WhatsApp, designed for non-U.S. clients. This initiative seeks to address a market void created when American Express scaled back its International Dollar Card program, providing international travelers a way to utilize their U.S.-held assets for spending.
Karta, a Miami-based startup founded by Freddy Juez and Orlando Espinoza, announced it has secured $15 million in a Series A funding round. Galaxy Ventures led the investment, with participation from new investor Illuminate and existing backers Canary and Clocktower Ventures. Additionally, Karta has established a $125 million debt facility through CIM, an investment firm specializing in credit facilities.
This funding supports Karta's mission to offer a premium U.S. credit card for clients residing outside the U.S. but holding assets in American banks or brokerages. The company is stepping in to fill a market need that emerged after American Express began reducing its International Dollar Card program, which previously served globally mobile clients who needed to spend U.S. dollars while traveling.
Karta's service allows eligible clients to apply through partner institutions and potentially receive approval within minutes, without requiring a Social Security number or Individual Taxpayer Identification Number. Once approved, clients receive a U.S.-issued Karta card with a credit line that can extend up to $200,000.
The service emphasizes a WhatsApp-first approach, with most client activities, including alerts, disputes, and concierge requests, handled through a 24/7 WhatsApp chat. Clients can immediately use a virtual card, with a physical Visa card provided subsequently. The card includes typical premium Visa benefits such as no foreign exchange fees, reward points, and access to select invite-only events.
Karta currently partners with approximately 85 private banks and wealth managers, including Itaú, Raymond James, and XP International US, to offer this U.S.-dollar product to their clients. Freddy Juez noted that the market previously lacked scalable, unsecured credit card solutions for a global clientele, which inspired the development of Karta.
(Source: Fortune)
