Credit Karma said on Tuesday (June 23) that it closed a Series D funding round for $175 million. Investors included Tiger Global Management, Valinor Management and Viking Global. With the inclusion of this latest investment, Credit Karma has raised just over $368 million since its inception in 2007.
The online credit scoring company said in the release detailing the funding that the proceeds will be used to grow its platform and attract more customers with additional features. Credit Karma’s new features will include consolidating student loans, comparing insurance quotes, choosing credit cards based on spending habits and credit profiles and auto financing.
“Imagine one financial platform that anticipates and provides everything you need,” said Ken Lin, Credit Karma’s CEO. “With more than 40 million members, we are excited by Credit Karma’s widespread adoption by people all over the country, giving us insight into $2.3 trillion of America’s household debt. This massive data enables us to deliver top quality insights for everyone looking to improve their personal finances.”
“We want to be a strong advocate for our members. Today, no one tells you when your credit rating goes up or when a lower interest rate is available for your loan,” Lin continued. “We’ll soon be able to let people know when they have an opportunity to save money, and if they’ll be approved, with new levels of certainty.
“Better yet, they only need to share their complete application when absolutely necessary, usually after knowing whether or not they’re approved.”
In February of this year, the company raised a $75 million round that took the valuation implied by the financing to $1 billion — a rarefied level for the tech startups club. The revenue model remains the same as has been seen previously, wherein Credit Karma matches consumers to financial products advertised on its site.
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