Credit Karma, based in San Francisco, has raised $175 million in venture capital to expand its product offerings for consumers' personal finances.
Tiger Global Management, Valinor Management and Viking Global Investors were among the investors that participated in the Series D funding round. Credit Karma, a provider of free credit scores from
Credit Karma faces competitors, such as Credit Sesame, which last month said it raised $16 million in financing, giving it a total of slightly more than $35 million, and Credit.com.
The new financing is a sign that many investors are betting that the financial industry is due for significant changes. Such sentiment was buoyed in part by the initial public offering of the peer-to-peer lender Lending Club last year.
Credit Karma plans to use the funding to expand the ways it uses its customer data, such as adding more automation to its personal financial-management tools.
"Our members will be able to apply for something without filling out endless forms," Nikhyl Singhal, Credit Karma's chief product officer, said in a news release. "They'll also only share the bare minimum of data necessary, yet they'll have access to a large number of lenders."
Credit Karma wants to make this process available for student loan consolidation, comparing customized insurance quotes, and determining which credit cards best fit their spending habits and credit profiles and financing their first cars, among other things.
