AAA Credit Karma conjures up $175m

Credit Karma conjures up $175m

Credit Karma, the US-based credit management platform backed by internet company Google, raised $175m yesterday in a series D round featuring Tiger Global Management, Valinor Management and Viking Global Investors.

Founded in 2007, Credit Karma provides free credit management scores and reports to an online membership base that now exceeds 40 million people.

The round, which valued Credit Karma at $3.5bn according to the Wall Street Journal, will fund an upgrade of the company’s platform, allowing users to build their own online financial identities.

Credit Karma plans to use the transition to establish itself as a one-stop finance management destination where users can monitor their credit while also consolidating loans and comparing financial product quotes.

Nikhyl Singhal, chief product officer of Credit Karma, said: “Our members will be able to apply for something without filling out endless forms. They will also only share the bare minimum of data necessary, yet they will have access to a large number of lenders.”

The round brought Credit Karma’s overall equity funding to $368.5m, $75m of which came from a September 2014 round featuring Google’s growth capital unit Google Capital, Tiger Global Management and Susquehanna Growth Equity that valued the company at $1bn.

Google Capital had already led Credit Karma’s $85m series C round, investing alongside Susquehanna Growth Equity, Tiger Global and Ribbit Capital. Credit Karma’s earlier investors include Felicis Ventures, QED Investors, Founders Fund and SV Angel.

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