CEO and Founder Adrian Nazari said the company is already profitable, with revenues growing 90 percent annually since 2014. He expects this funding round will be the last one before the company goes public.
Although the company’s valuation was not disclosed, Nazari said it is expected to be over $1 billion.
Led by ATW Investors, the funding also includes previous investors Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital Groups, Symantec, Capital One Ventures and Stanford University. The funding will be earmarked for artificial intelligence (AI) algorithms and business expansion.
Although there is competition from Credit Karma, NerdWallet, Experian, ClearScore, Equifax and others, Credit Sesame said it has a unique approach to helping people manage their credit score.
The company’s RoboCredit algorithm is based on a basic score provided by TransUnion, but also includes other factors to show people what they should do to improve their credit scores.
Users can check their credit scores for free and explore various options for loans and other debts that could affect their scores.
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The American Bankers Association said in 2015 that only 42 percent of Americans know their FICO score. That can be problematic because, according to data released by the Corporation for Enterprise Development (CFED), the majority of Americans do not have good scores. The nonprofit’s report indicates that 56 percent of consumers have subprime credit scores.
