YML built Credit Karma's foundational digital product.
A start-up known for providing free credit scores, Credit Karma has officially been acquired by Intuit, the software and financial firm that also owns financial products like TurboTax, QuickBooks and Mint.
The deal is worth just over $7 billion, and highlights the value of the financial data of ordinary Americans. Credit Karma grew to be worth billions of dollars by selling credit card offers to its customers after building their credit profiles.
Over the last decade, Intuit has been building its brand around helping businesses and consumers manage their financial data, which is why this acquisition is in many ways a natural fit.
"Credit Karma has been at the leading edge of a large group of start-ups in the financial technology sector over the last decade," according to The New York Times. "It says its customers include a third of all Americans who have a credit profile."
Credit Karma has over 1,100 employees and is based in San Francisco. The volatility of start-up I.P.O.'s — from the rocky I.P.O. of Uber to the failure of WeWork’s planned offering — created a tense environment for budding start-ups. The Credit Karma-Intuit successful acquisition comes on the heels of Plaid's acquisition, another successful fintech start-up, which sold itself to Visa for $5.3 billion rather than stage an I.P.O.
Sheel Mohnot, a venture capitalist who focuses on fintech start-ups, shared with The New York Times that after this recent acquisition, Intuit's portfolio is so robust that it could become a sort of Facebook for financial services.
“They would have all of this rich information, and they would basically be an ad network,” he said. “You’re almost forced to advertise with them.”
In the news
"Intuit confirms that it's buying Credit Karma for $7.1 billion in cash and stock"
"Intuit Is Expected to Buy Credit Karma in $7 Billion Deal"
The New York Times
"Why is Intuit's acquisition of Credit Karma a big deal?"
"Here are the big winners of Intuit's $7 billion Credit Karma Acquisition"
Silicon Valley Business Journal
"Credit Karma-Intuit deal: What a $7.1B combination means for investors – and for you"
Reach out to YML with any questions about the work or if you have a project in mind.