Feb 24, 2020 - Economy & Business

Intuit reportedly nears $7 billion deal to buy Credit Karma

Illustration: Aïda Amer/Axios

Intuit is nearing a $7 billion deal to buy Credit Karma, a San Francisco-based provider of consumer credit-score checks and monitoring services, as first reported by the Wall Street Journal.

Why it matters: The combined company would hold a staggering amount of personal financial information. For consumers, that means much better recommendations and much bigger privacy concerns.

  • Credit Karma raised around $370 million in VC funding from firms like Ribbit Capital, Felicis Ventures, CapitalG, QED Investors, and Susquehanna Growth Equity. Silver Lake purchased a 12.5% stake from insiders in early 2018 at an estimated $4 billion valuation.

The bottom line: "Intuit could try to match all the tax data its TurboTax customers provide with the credit-scoring data that Credit Karma holds. That could let Intuit serve up better customer prospects to credit card issuers — and eventually let Intuit charge lenders more for access to its hoard of data, writes the New York Times.

Go deeper: What Intuit knows about you

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Intuit acquisition spells doom for Credit Karma

Illustration: Eniola Odetunde/Axios

Karma says that if something bad happens to you now, you probably did something to deserve it. So what did Credit Karma do to deserve being bought by Intuit?

Driving the news: Credit Karma is the most successful of the apps built around giving people their credit score for free. It had about $1 billion in revenue in 2019, and served some 37 million monthly active users. Now it's being bought by Intuit for $7.1 billion.

Felicis Ventures raises $510 million for seventh fund

Source: Felicis Ventures

Felicis Ventures, an early-stage VC firm that's riding high with the recent sales of Plaid (to Visa for $5 billion) and Credit Karma (to Intuit for $7 billion), has raised $510 million for its seventh fund.

The bottom line: Most of the fund was raised before coronavirus sent the markets into chaos, but Felicis founder Aydin Senkut has been through enough cycles to avoid sudden investment strategy shifts.

Fed says it will help business-funding market amid coronavirus outbreak

Jerome Powell. Photo: Mark Makela/Getty Images

The Federal Reserve said Tuesday it would intervene in a key market used by cash-strapped businesses for the first time since the financial crisis — a move intended to help corporations hurt by the coronavirus outbreak.

Why it matters: This market froze up in recent weeks, limiting businesses' ability to borrow at a time when the halt in economic activity is weighing on American corporations. It's the latest in a series of moves by the Fed to step in and ease that pain.

Go deeperArrowUpdated Mar 18, 2020 - Economy & Business