Today, Credit Sesame, the free service that helps consumers easily monitor their credit and loans in one place and save money on debt, announced that it has raised $12 million in new funding.
Globespan Capital Partners led the round with participation from Credit Sesame's existing investors, Menlo Ventures and Inventus Capital. The latest round of financing will support Credit Sesame's expansion to reach millions of Americans.
U.S. households carry $14 trillion of debt in mortgages, credit cards, consumer loans, and student loans. Yet the average consumer lacks an easy, objective tool to help them make smart financial decisions. By providing consumers with instant, free access to credit scores and critical financial information, Credit Sesame meets this need and goes a step beyond. Credit Sesame's proprietary analytics engine analyzes a consumer's credit profile against thousands of available financial products in the market to find solutions to help consumers save money and meet their individual financial goals.
"As investors, we believe that Credit Sesame has tremendous potential to help Americans achieve a better financial future," said Daniel Leff, Ph.D., Globespan Capital Partners. "The company is solving a real problem for consumers and has already demonstrated great success in helping its users simplify the daunting task of understanding their comprehensive credit and debt profile, and how they can improve their finances with little or no effort. We are happy to fuel the company's growth and help Credit Sesame realize its goal of reaching millions of Americans."
Since its public launch, Credit Sesame has experienced tremendous user growth and now oversees more than $22 billion in consumer loans and debt on its personal finance platform. Credit Sesame currently finds $175 million a month in savings for its users. As a result, nearly half (48%) of the users now frequent the site 2- 3 times a month to stay abreast of their finances and realize ways to stop overpaying on their debt. The company's performance is also well reflected in its revenue growth, which has quadrupled quarter over quarter.
"Credit Sesame helps consumers better manage the critical part of their finances they often neglect: their credit and debt," said Adrian Nazari founder and CEO of Credit Sesame. "While consumers are out investing countless dollars and hours, trying to time the market for a slightly better return on their investments, we're giving them the edge back home, making sure they're not incurring thousands of extra dollars in cost each year on their loans and credit needs."
Credit Sesame will use the funding to expand its market reach and to continue investing in its patent-pending analytic tools developed by Stanford University scientists and vetted by top banks. The company plans on hiring talent in marketing and engineering and enhancing its mobile app, the #1 free credit score app in the iTunes store.