Credit Karma, which helps users keep track of their credit scores, has just secured a little financial aid of its own.
The nearly seven-year-old start-up announced on Wednesday that it has raised $85 million in a third round of fund-raising, led by Google through an investment arm that specializes in late-stage technology companies.
Others participating in the round include Tiger Global and Credit Karma’s existing investors Ribbit Capital and Susquehanna Growth Equity. To date, the company has raised $118.5 million.
The investment is the fifth by Google Capital, which has already taken stakes in a number of prominent start-ups since its formation last year. To date, the fund has invested in SurveyMonkey, the online survey company; Lending Club, a leader in the peer-to-peer lending industry; Renaissance Learning, an education analysis company; and Auction.com, a real estate site.
Unlike Google Ventures, the search giant’s venture capital arm, Google Capital is targeting companies at more advanced stages of their business lives. Now it is investing in Credit Karma, which provides free credit monitoring for customers while relying on advertising for revenue.
“Consumers want a trusted, secure service to provide personalized financial information that is easy to understand,†said David Lawee, a partner at Google Capital, who will join Credit Karma’s board. “Credit Karma delivers on these extremely high expectations at no cost to consumers.â€
The start-up said that its membership, growth and employee roster grew by triple-digit percentages last year. It plans to use its newest funds to continue expanding its services and hiring more workers.
“Google Capital’s support - along with Tiger Global and our existing partners - is a public endorsement of how we’re helping consumers navigate the credit space,†said Ken Lin, the chief executive and a co-founder of Credit Karma. “At the core of our company vision is the desire to change how people interact with their finances, making it easier and more transparent.â€
