Credit Karma secures $85M in new funding round
Credit Karma has obtained $85 million in its latest funding round, TechCrunch reported.
The latest financing round for the platform that provides users their credit scores for free was led by Google Capital. It was also joined in by Tiger Global Management and previous backers, Susquehanna Growth Equity and Ribbit Capital. The post-funding valuation of the credit score provider and credit marketplace firm is now below $1 billion, the report said.
This brings to $118.5 million the fundraising total raised by the eight-year old company. According to those who are knowledgeable about the Credit Karma's plans, the company will get the $60 million while the $25 million will be deployed as a secondary investment to give its shareholders and employees liquidity, the report said.
In a previous report, TechCrunch said Credit Karma's user base now comprises the $1.2 trillion of consumer debt in the US. This makes up an estimated 10% of the close to $13 trillion of the outstanding consumer debt in the country, the report said.
Credit Karma is now adding services to monetize its massive user base. Aside from allowing customers get their credit score at no cost, the company is also seeking to collaborate with lenders in order to form a platform that would give recommendation and origination services to customers so they can take care of their debts more effectively, the report said.
Google Capital, meanwhile, has been busy backing companies even if it is supposed to be introducing its later stage $300 million fund earlier in 2014. Its investments include SurveyMonkey, Renaissance Learning and Lending Club, the report said. Tiger Global, too, has been active in the investment circuit as well. Starting in the beginning of this month, it has been a part of three publicized transactions with pledged capital worth more than $200 million combined, the report said.