Google Capital participates in a new funding of $85 million for Credit Karma, a San Francisco-based startup that provides free credit scores to consumers. Google Capital financed roughly half of the $85 million round, with the rest coming from Tiger Global, Ribbit Capital, and Susquehanna Growth Equity.
People visiting Credit Karma can take a free peek at their credit score weekly, which is based primarily on information from credit-rating agency TransUnion. The site has over 20 million registered subscribers, up from about 9 million a year ago, according to chief executive Ken Lin.
Credit Karma requires a Social Security number to open an account, but it doesn’t store that information. Lin also said that it doesn’t plan to begin sharing information about its members with Google following the investment. The startup earns its revenue from advertising, which is primarily for financial services like credit cards and loans.
With its total financing now at $118.5 million, Credit Karma plans to double its 110-employee workforce and introduce new products over the coming year. The firm has made it clear that it aims to provide free services for which consumers have traditionally had to shell out their hard-earned dough.
About Credit Karma: The principle of Karma is common to many beliefs. The general idea is that any action a person takes either positive or negative, will have an inevitable equal effect in the future. A person’s credit score is kind of an expression of this concept; an index of a person’s credit history: The Credit Karma. Credit Karma embodies the best parts of these two disparate yet similar concepts to help people stay aware of their Credit Score and gain access to exclusive deals at the same time.
Credit Karma services start with a free credit score. No credit card is required and no strings are attached. One can return as often as one likes and use Karma service to track their credit file and stay informed. Credit Karma believes this is a fundamental consumer right. Credit Karma will continue to provide these free credit scores while doing the most to protect a person’s privacy regardless if one uses other Credit Karma services. Credit Karma facilitates access to a wide range of lending products.