Goldman Sachs Bank USA, a subsidiary of investment banking group Goldman Sachs acquired Clarity Money yesterday for a reported $100m, allowing financial services firm Citi to exit.
Although the companies did not reveal the amount paid by Goldman Sachs, Reuters reported last month it would spend more than $100m on the startup, citing two unnamed sources.
Clarity has developed a mobile app with more than 1 million registered users that uses artificial intelligence, machine learning and data science to manage a user’s personal finances.
The platform, which was launched in January 2017, helps user’s track their spending more efficiently, identifies potentially unwanted subscriptions that could be cancelled and recommends additional personal finance products.
Clarity’s technology and team will be absorbed into Marcus, a Goldman Sachs unit that offers no-fee, fixed-rate unsecured personal loans. Founder and chief executive Adam Dell will take a senior management role on the Marcus team.
The acquisition follows $14.5m in venture funding, $11m of which came in a March 2017 series B round led by Citi’s strategic investment vehicle, Citi Ventures, with participation from venture capital firm RRE Ventures.
RRE had joined fellow Soros Capital, part of hedge fund manager Soros Fund Management, and VC firms Bessemer Venture Partners and Maveron Ventures to invest $3.5m in the startup in December 2016.