Credit Karma, a Web-based consumer finance and technology startup, procured $75 million in an add-on growth round of funding. Participation came from existing investors Google Capital, Tiger Global, Ribbit Capital and Susquehanna Growth Equity, bringing the total to $193.5 million in equity investments so far.
Eight months after raising $85 million in the Series C round and a customer base increment of 50 percent, Credit Karma is now valued at more than a billion dollars following the new round of funding.
“We believe this investment speaks to two themes: Continued confidence that we are the industry’s leading consumer credit and finance platform, and repeated strong consumer demand for our product,” noted Ken Lin, CEO and founder of Credit Karma. “Today’s complex marketplace requires a pro-consumer resource that makes financial comprehension easy, transparent and empowering. Credit Karma delivers that.”
Credit Karma provides free credit reports to users, with tools to monitor their finances and assists in choosing suitable vendor for credit cards, loans or mortgages. Its revenue, on the other hand, is generated through sponsorships with financial institutions that pay Credit Karma only when its members buy one of their products.
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Founded in 2008, it has an 30 million users according to their press release. Credit Karma announced that they will utilise the new funding to fuel its growth initiatives and ongoing product innovation.
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(Image Credit: Sean MacEntee)