Editor’s note: CardUp has amended the figure of their funding round to reflect changing exchange rate.

Singapore-based fintech startup CardUp today announced that it has raised a S$2.2 million (US$1.7 million) funding round led by Sequoia India and SeedPlus.

The funding round is the first round of institutional investment that CardUp has secured.

The startup builds a platform that enables users to use their credit cards to pay for payments in big numbers that are usually done by bank transfer, such as rent, taxes, insurance premium, and tuition fees.

It enables users to maximise card benefits; it also does not require fund recipients to accept credit cards.

The new funding will be used to expand CardUp’s product offering in the SME space, with a new credit and cash flow management solutions.

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In a press statement, the startup dubbed the SME space as an “underserved market” where existing traditional financing options “may not meet all their needs.”

CardUp also explained that by shifting their expenses to credit card via their platform, businesses can get access to interest-free credit of up to 55 days, increased access to working capital, improved cash flow, and a digitised process.

“We are delighted to have secured our first round of institutional investment from investors with deep expertise in the payments space and a strong regional network to help us grow the business further,” said CardUp CEO and Founder Nicki Ramsay.

Since its launch in 2016, CardUp claimed to have 41 per cent average monthly user growth rate, with over S$55 million (US$42 million) in payments has been created on the platform in the last year. According to the startup, the number represents more than one per cent of overall credit card spend growth in Singapore from 2016 to 2017.

It has established partnerships with major banks and credit card providers including UOB, Citibank, Bank of China, and Mastercard.

CardUp was one of six companies globally selected for Mastercard Start Path in 2017; part of the inaugural class of The FinLab in 2016, the Singapore-based fintech accelerator between United Overseas Bank and SGInnovate; and a finalist in The Monetary Authority of Singapore’s Global Hackcelerator 2016.