Frequently Asked Questions

Karncy is an Indian private limited company founded by Siva Krishna Kolli and Venkata Sreedhar Edupuganti in Aug 2023

Karncy is a fintech company that offers an online platform for invoice discounting and startup growth funding. By allowing businesses to sell their unpaid invoices raised against well-rated companies, we promote sustainability by enabling them to raise funds for their working capital needs at attractive rates. We provide expertise to help businesses manage their working capital effectively, with the ultimate goal of enhancing their end-to-end fund and working capital positions. In addition, we offer short-term investment opportunities to investors seeking sustainable returns, providing a unique avenue for profitable and responsible investments

The Karncy Investor Partner Program empowers partners to drive profitability and create tangible value for their clients. Our investment opportunities offer low-risk, high-return options that lead to healthy portfolio diversification.

Karncy accepts investments from various entities, including individual resident investors, HUF/Proprietorship registered in India, institutional investors such as banks, NBFCs, and other financial institutions, and NRI investors with an NRO account and comply with basic KYC guidelines such as a valid PAN card and Indian address proof.

Karncy offers a platform that facilitates business owners to sell their invoices raised on externally well-rated companies to investors who can purchase them. Business owners looking for advances on their invoices raised against creditworthy institutions can use our platform to sell their unpaid invoices at attractive rates. With a deep understanding and expertise in credit analysis, Karncy has helped to deliver highly satisfactory financial services to its clients.

Invoice discounting is a financial practice that allows companies to use their unpaid invoices as collateral to obtain working capital and meet their financial requirements. This process entails transferring invoice rights from the seller (i.e., business) to the financier (i.e., investor) at a predetermined value.

Alternative financing encompasses financing options that fall outside the traditional purview of banks and other financial institutions. It is an alternative to time-consuming and complicated loan processes and offers more accessible access to funds. Alternative financing is typically available online and includes invoice discounting, crowdfunding, and invoice factoring etc.

Yes, at Karncy, we place the highest priority on security. Our platform adheres to robust data protection measures that guarantee the security and privacy of our users.

Alternative investments refer to any investment that falls out of traditional banking or stock market investment, including peer-to-peer lending, invoice discounting, and more. Following the economic crisis in 2009, the demand for investment options with shorter terms and higher returns grew, leading to the emergence of alternative investments.

The Karncy Business Partner Program is expertly crafted to provide fast, flexible, and convenient financial solutions tailored to meet our client's unique business requirements. In addition to providing financial support, we offer our expertise to add value to your company and help you manage your working capital effectively. Our ultimate goal is to enhance your business's end-to-end fund and working capital positions.

To become a partner with Karncy, all you need to do is register on our website, and our team will contact you to assist with onboarding and provide guidance in discovering the most suitable alternative financing solutions for your clients.

The initial onboarding process for the Karncy Invoice Discounting program takes approximately 7-10 days to assign a credit limit. Once the business is onboarded, the discounting process can be completed within 3 days, providing a fast and efficient means of accessing funds.

Invoice discounting is an off-balance sheet item as it relies on unsettled invoices and therefore does not impact your balance sheet.

Karncy offers invoice discounting services to businesses that provide goods/services to externally well-rated companies. Hence, the eligibility and amount of discounting are determined based on the creditworthiness of the business, and therefore, they should be willing to disclose their financial information and related documents.

Karncy provides a flexible upper limit for the amount sanctioned on your invoices based on your business's needs, without any maximum limit. However, the upper limit is subject to meeting Karncy's eligibility criteria.

Alternative investments refer to any investment that falls out of traditional banking or stock market investment, including peer-to-peer lending, invoice discounting, and more. Following the economic crisis in 2009, the demand for investment options with shorter terms and higher returns grew, leading to the emergence of alternative investments.

No, Karncy places the highest priority on the security and privacy of our users' financial information. We do not share any financial information with third parties without the explicit consent of the user.

Karncy, in collaboration with its partner bank, facilitates opening an individual escrow account for each member. All fund transfers take place through these escrow accounts. In case of Karncy's liquidation due to financial or legal reasons, the funds in a member's escrow account will be promptly returned to the respective owners. The money involved in the process will not be transferred to Karncy's account at any stage (except service fees, government taxes, etc.).

Karncy provides a platform that leverages expert cash flow optimization to facilitate seamless transactions between invoice sellers and investors. Our platform equips investors with a range of tools, including credit reports of sellers and enterprise reports, to enable them to make informed investment decisions. Investments made on Karncy are subject to risk associated with invoice discounting, and hence, Karncy does not provide any guarantee for fixed returns to investors.

Our invoice financing platform is backed by a robust due diligence process that includes manual verification of all parties. We are highly selective in our choice of business partners. If a borrower defaults on payment, they are legally bound to pay back the amount owed to investors, irrespective of the invoice status. In case of default, we provide legal support and have collaborations with debt collection agencies to help recover the loss.

The minimum investment amount per deal currently stands at INR 3 lakhs, which has been set to ensure sufficient liquidity and risk appetite for investing in the alternative asset class.

No, as an investor, you have the flexibility to choose the amount you wish to invest in an invoice and can opt to partially or fully fund it.

At present, we offer a short-term investment facility to our investors, with tenures limited to 90 days or less.

Karncy, in collaboration with its partner bank, facilitates opening an individual escrow account for each member. All fund transfers take place through these escrow accounts. In case of Karncy's liquidation due to financial or legal reasons, the funds in a member's escrow account will be promptly returned to the respective owners. The money involved in the process will not be transferred to Karncy's account at any stage (except service fees, government, taxes)

To become a part of Karncy’s partner community, register yourself on our website, and we will guide you through the onboarding process.