Total amount raised
$868 Millions
Latest funding date
Location
Credit Karma has successfully raised significant funding over multiple rounds, culminating in its acquisition by Intuit for $7.1 billion. The platform offers a range of financial tools and personalized recommendations to help users manage their finances effectively.
Keep reading to explore the intricacies of Credit Karma's fundraising journey and the investors backing this innovative platform.
What Is Credit Karma?
Credit Karma, founded in 2007 by Kenneth Lin, Nichole Mustard, and Ryan Graciano, is a financial technology company based in San Francisco, California. The company aims to help individuals make financial progress through a variety of tools and personalized recommendations.
Credit Karma offers free credit scores, credit reports, and credit monitoring, along with personalized recommendations for credit cards, personal loans, auto loans, and home loans. The platform also provides financial insights, calculators, and articles to help users make informed financial decisions.
With a workforce of 1001-5000 employees, Credit Karma continues to innovate and expand its services, including tax filing powered by TurboTax, to better serve its community of over 140 million members.
How Much Funding Has Credit Karma Raised?
- Angel Round
- Amount Raised: $500K
- Date: October 2008
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to develop the platform and launch the business.
- Series A
- Amount Raised: $2.5M
- Date: November 2009
- Lead Investors: QED Investors
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's features.
- Series B
- Amount Raised: $30M
- Date: April 2013
- Lead Investors: Ribbit Capital, Susquehanna Growth Equity
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase user acquisition.
- Series C
- Amount Raised: $85M
- Date: March 2014
- Lead Investors: CapitalG
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand into new financial services.
- Series D
- Amount Raised: $75M
- Date: September 2014
- Lead Investors: SV Angel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and support rapid growth.
- Series E
- Amount Raised: $175M
- Date: June 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and invest in new technologies.
- Secondary Market
- Amount Raised: $500M
- Date: March 2018
- Lead Investors: Silver Lake
- Valuation at Round: $4 billion
- Motivation Behind the Round: To provide liquidity for existing investors and employees, and delay an IPO.
Total Amount Raised: $867M. Current Valuation: $4 billion.
Key Investors
- Silver Lake
- Details: Silver Lake is a global private equity firm focused on investments in technology and technology-enabled industries. They have a significant minority stake in Credit Karma.
- Investment Focus Areas: Technology, software, data.
- Notable Investments: Dell Technologies, Airbnb, Twitter.
- CapitalG
- Details: CapitalG is the growth equity investment fund of Alphabet Inc. They invest in companies that are driving innovation and growth in their respective industries.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: Lyft, Stripe, Duolingo.
- QED Investors
- Details: QED Investors is a leading venture capital firm focused on investing in early-stage, disruptive financial services companies. They were the lead investors in Credit Karma's Series A round.
- Investment Focus Areas: Fintech, financial services, insurance.
- Notable Investments: SoFi, Avant, GreenSky.
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm that invests in companies aiming to disrupt financial services. They were key investors in Credit Karma's Series B round.
- Investment Focus Areas: Fintech, cryptocurrency, insurance.
- Notable Investments: Robinhood, Coinbase, Revolut.
- SV Angel
- Details: SV Angel is a San Francisco-based angel firm that helps startups with business development, financing, and M&A. They were lead investors in Credit Karma's Series D round.
- Investment Focus Areas: Technology, internet, software.
- Notable Investments: Twitter, Airbnb, Dropbox.
What's Next for Credit Karma?
Credit Karma's future looks promising with the recent $500 million secondary investment from Silver Lake, which has boosted its valuation to $4 billion. This partnership opens doors for technological advancements and long-term growth, positioning Credit Karma to capitalize on the growing trend of consumer-facing financial tools and services.
As the fintech industry continues to attract significant investments, Credit Karma may explore future fundraising opportunities, including a potential IPO. However, the company will need to navigate challenges such as maintaining its growth trajectory and managing investor expectations, especially in a competitive market.
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