Alternative Finances

Credit Karma Raises New Round Of Funding

Whoever said that no one ever got rich giving something away for nothing had clearly never met the good people at Credit Karma.  The San Francisco start-up that made its name by offering consumers a truly free glance at their credit reports has just finished off a $75 million funding round. The latest round Growth Equity dollars raised off of Google Capital, Tiger Global Management, and Susquehanna Growth Equity is the company’s second in 8 months and leaves company with a valuation of more than $1 billion.

During the 8 months since its last funding round, Credit Karma’s user based has growth 50 percent, reports Tech Crunch.  

Credit Karma has 32 million users and has raised around $194 million in outside funding to date.  It’s goal is simply to let consumers know what their credit score is and to warn them when they are engaging in behavior that is taking a golf-club to the windshield of their credit profile. And the service is actually free, not a covert subscription service that offers a view into one report before charging consumer monthly.  Credit Karma’s income stream comes from selling users credit products matched to them because of their credit history.

The company says the new funding is being used to “further advance its growth initiatives and ongoing product innovation.”

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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