Wake Forest fintech Impact Karma recently closed on $5.5 million as it prepares for the roll out of its first sustainably-focused debit card.
Co-founder Jayant Khadilkar said investors — 37 of them according to a securities filing — bought into the mission of what the firm is trying to do: enable shoppers to be more intentional with their purchases while helping the world in the process.
The firm’s reloadable prepaid Visa debit card has its full launch in February. Nearly 1,000 sustainable merchants are offering cash-back rewards for card holders, Khadilkar said. And Impact Karma will donate to causes based on some purchases too – meals out, for example, will mean “we’ll donate a meal,” he said.
“Our mission and what we’re trying to do resonates with quite a few people,” Khadilkar said.
Impact Karma, also known by its platform’s name, Karma Wallet, was cofounded by Khadilkar and his son, Kedar Karkare, The idea for the company came about after Karkare, a UNC graduate living in Houston, called Khadilkar in 2019 and talked about the difficulties of being a conscious consumer.
The firm initially created a database with information about thousands of brands and merchants — data on their social and environmental actions. Users of its platform could then understand the carbon footprint created by their shopping habits. Khadilkar has compared it to a "credit score" focused on environmental impact.
The funding disclosed this week is the fourth outside raise for the firm, according to SEC filings – and its first equity raise. The round, according to the SEC filing, included the conversion of promissory notes and simple agreements for equity.
Impact Karma last raised capital in 2022 — a debt round of just over $800,000.
This round, currently at just under $5.5 million, is part of a larger raise that's planned to pass $7.2 million, according to securities filings.