A Company That Helps You Find The Perfect Credit Card Is Now Worth $US1 Billion

Credit Karma
Credit Karma employees Credit Karma

Credit Karma, a credit-tracking personal finance site, raised $US75 million on Monday in a new round of funding that values the company at more than $US1 billion, The Wall Street Journal reported.

The new funding, coming just six months after its $US85 million Series C, was led by Google Capital, Tiger Global Management, and Susquehanna Growth Equity. The 7-year-old company now has raised over $US193 million.

Credit Karma calls itself the “Expedia for financial services products.” Its users get free credit reports, and based on that score, receive financial product offers, like credit cards or mortgages, that would fit their needs. It also provides financial tools and advice to help its users better understand their own finances.

The site currently has 32 million users, and is growing at a healthy clip, adding 1.5 million new users every month, according to Bloomberg. It doesn’t charge its users, however, and instead takes a portion of any deal made between financial institutions and its members.

Credit Karma’s CEO Ken Lin said in March that it’s making more than $US200 million a year, according to Quartz. It’s unclear if it’s profitable yet, but he said at the time that “the outfit wavers between profitability and break-even status.”

Credit Karma is the 15th US tech company to get a valuation over $US1 billion this year, Bloomberg says. It’s also part of a growing number of financial tech startups attracting massive VC money, like Lending Club, which has raised over $US392 million to date, and SoFi, which had more than $566 million in venture capital funding so far.