Investors Express Confidence in Credit Karma with $75M Funding

Credit Karma is on a steady path of growth and seems set to dominate the credit tracking and personal finance industry.

According to TechCrunch, the company has received a fresh injection of capital having raised an additional $75 million in funding from institutional investors Google Capital, Tiger Global Management and Susquehanna Growth Equity.

The Wall Street Journal has reported that this new funding puts the company at a valuation of more than $1 billion.

The consumer-facing company which calls itself the ‘Expedia for financial services products’ has raised over $193 million in venture funding.

A press release put out by Credit Karma said that the new round of funding marks another strong validation of its business model and growth trajectory. The release also indicated that the funds will be used to advance Credit Karma’s growth initiatives and ongoing product innovation.

In a time when financial literacy and management of debt have become big issues for consumers, investors are giving their stamp of approval to Credit Karma’s business model.

Credit Karma provides free credit reports and helps consumers search for favorably priced financial products, such as credit cards, loans or mortgages. The company’s website, provides a host of financial information and insights into personal finance and serves as the hub of Credit Karma’s interface with its customers. The Inquisitr revealed that the company also provides cutting edge analysis of the credit situation in the US with its Credit Score Climate Report.

Credit Karma makes money by marketing the products of financial services companies,which are recommended to customers based on their financial history, current standing and needs.

Credit Karma’s founder and CEO Ken Lin has been reported as saying, “the company is profitable and on a current annual revenue run rate in the hundreds of millions of dollars.”

This indeed has to be the case as the institutional investors which have backed Lin’s dream seem to be happy with the company’s performance and have expressed their confidence in Credit Karma with this latest round of financing.

Ken Lin in celebrating the news of the additional funding for Credit Karma was quick to point out this fact.

“We believe this investment speaks to two themes: Continued confidence that we are the industry’s leading consumer credit and finance platform, and repeated strong consumer demand for our product. Today’s complex marketplace requires a pro-consumer resource that makes financial comprehension easy, transparent and empowering. Credit Karma delivers that.”

Bloomberg has reported that Credit Karma now has 30 million users and is adding 1.5 million users each month.

[Image Credit: Wall Street Journal]

Share this article: Investors Express Confidence in Credit Karma with $75M Funding
More from Inquisitr