Karta's $140M Raise Targets Credit-Invisible Travelers

Karta, a credit card company built for international travelers, has raised $140 million in new funding.

The round, announced Wednesday, combines a $15 million Series A led by Galaxy Ventures with a $125 million debt facility from CIM. Karta plans to use the capital to launch a higher-tier card, debut a corporate card and payment platform, and expand its travel concierge service.

The company's pitch addresses a specific gap: travelers with strong credit histories in their home countries often arrive in the U.S. as "credit-invisible" – no Social Security number, no ITIN, no FICO score. Karta approves applicants in minutes without either identifier, offering credit lines up to $200,000 through a Visa premium card with zero foreign transaction fees and points.

Karta distributes through more than 80 private banks and wealth managers. The model appears to be gaining traction: total payment volumes and revenue both quadrupled quarter over quarter, the company said.

"We set out to build the ultimate tech-forward credit card for the global traveler, and are thrilled to see the rapid increase in private banks working with us to offer this card to clients," said Freddy Juez, one of Karta's founders.

The funding comes as secured and alternative-credit products draw more attention from banks and fintechs. A recent PYMNTS Intelligence report argued that tighter access to unsecured credit, combined with pressure on debit revenue, is pushing more institutions toward secured credit models. The report noted that older secured products often require consumers to lock away cash and manage multiple balances, creating friction that newer entrants like Karta aim to avoid.

Karta's approach sidesteps the secured model entirely – it issues unsecured credit lines based on foreign credit history, not a cash deposit. That distinction matters for the target customer: a professional relocating to the U.S. or a wealthy traveler who wants a premium card without waiting months to build a domestic credit file.

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For readers tracking the broader payments and lending space, Karta's raise fits a pattern: startups targeting credit-invisible populations – immigrants, young adults, thin-file borrowers – are attracting both equity and debt capital as traditional issuers struggle to underwrite outside the FICO framework. The $125 million debt piece suggests CIM sees the loss assumptions as manageable at scale.

Karta's next test is execution on the corporate card and the elevated tier. Both products require underwriting larger credit lines and managing cross-border fraud risk, which gets harder as the portfolio grows.