Credit Karma, the consumer's financial advocate, today announced it has raised $30 million in Series B financing.
Ribbit Capital, a venture capital firm focused on the financial services industry, and Susquehanna Growth Equity, a private equity affiliate of Susquehanna International Group, LLP, led the investment, with participation from existing investor Felicis Ventures.
The financing brings the total amount raised by Credit Karma to $33.5 million. Since its Series A announcement in 2009, the company has increased revenue by more than 4,000 percent and registered an additional 10 million members, who turn to Credit Karma for free online tools that help them take charge of their financial health. Credit Karma is also available on the Android and iOS platforms.
Credit Karma intends to use the capital to accelerate its product roadmap, including expansion into new verticals and markets. The funds will also enable the company to increase headcount, expand its infrastructure and resources, and continue to innovate through the development of new products and services.
"The new funding will help us continue to improve our products and find innovative ways to serve consumers," said Ken Lin, CEO and founder of Credit Karma. "We are thrilled to welcome Ribbit Capital and Susquehanna Growth Equity as investment partners and look forward to leveraging their deep industry knowledge and expertise to take Credit Karma's growth to the next level. Importantly, all of our investment partners share our vision to become a household name for consumer advocacy and empowerment."
"Credit Karma has revolutionized the relationship consumers have with their credit, as evidenced by the company's exponential growth over the past several years," said Micky Malka, founder and General Partner of Ribbit Capital. "Credit Karma is truly a trusted consumer brand -- a key element of success in personal financial services -- and we look forward to working with the team to continue to build out the platform and capitalize on the broader opportunities in this space."
Ribbit Capital targets disruptive, early-stage companies that leverage technology to reimagine and reinvent what financial services can be for businesses and individuals.
"Whether a mortgage, credit card, auto loan, student loan or other financial product, the process of accessing credit is cumbersome, costly and confusing," said Scott Feldman, Susquehanna Growth Equity director. "We spent the last seven years looking for a disruptive player in personal financial management and credit analytics that set out to bring transparency to the market, and we finally found Credit Karma. No other company offers consumers access to their personal financial condition data and assistance in finding the right credit products, at the right time and at the right cost. All of this for free! It's a game changing business model that we think could redefine how consumers and financial institutions interact in the future."
With this investment, both Malka and Feldman will join Credit Karma's Board of Directors.