- Intuit has officially confirmed it is buying Credit Karma for $7.1 billion. This is why Intuit is buying the company.
Intuit — the company behind TurboTax, QuickBooks, and Mint — announced this week that it agreed to buy Credit Karma for $7.1 billion in cash and stock. Credit Karma is a consumer technology platform with over 100 million members in the U.S., Canada, and the U.K. for approximately $7.1 billion in cash and stock.
And by agreeing to acquire Credit Karma — a company with nearly $1 billion in unaudited revenue in the calendar year 2019 (up 20% from the previous year) — Intuit accelerates its mission of powering prosperity around the world.
This combination brings together two technology leaders with a shared goal to help solve the personal finance problems that consumers face today regardless of their financial situation: managing debt, maximizing savings, and access to better credit cards and loans with an aim to put more money in consumers’ pockets.
Consumers often struggle with not knowing or not fully understanding where they stand with their finances. And household debt in the US hit $14.1 trillion including with $9.6 trillion in mortgage debt, nearly $1 trillion in credit card debt, and $1.5 trillion in student loan debt (New York Fed). And 23 million people relied on at least one payday loan in 2018 to get faster access to cash.
Intuit and Credit Karma are tackling these problems by making it simple for consumers to make better decisions with their money through a consumer finance platform that works as a personalized financial assistant, helping consumers find the right financial products, put more money in their pockets, and have access to actionable insights and advice. And this platform will provide consumers with transparent access to their critical personal finance information —including their income, spending, and credit history — to help them better understand their complete financial picture and use it to their advantage such as for obtaining better interest rates. The result is going be a complete financial profile that puts the power in consumers’ hands so they can take the steps necessary to improve their financial health and maximize their money.
Launched in 2007, Credit Karma has the largest engaged member base in consumer digital finance with over 100 million members (37 million monthly active users) of which 88% engage on mobile devices. And the company has nearly tripled the growth of its member base over the past five years and created a marketplace comprised of more than 100 financial service providers.
Key Quotes:
“Our mission is to power prosperity around the world with a bold goal of doubling the household savings rate for customers on our platform. We wake up every day trying to help consumers make ends meet. By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted.”
– Sasan Goodarzi, CEO of Intuit
“We started Credit Karma with a goal to build a trusted destination for all consumers, to make financial progress regardless of where they are in life. We saw the opportunity to enrich people’s financial lives through transparency, simplicity, and certainty.”
– Kenneth Lin, Founder and CEO of Credit Karma
