Hedge Funds Boost Investment in Credit Karma

Jun 23 2015 | 8:58pm ET

Tiger Global boosted its investment in start-up Credit Karma, as hedge funds continue to boost investment in financial technology firms. Viking Global Investors and Valinor Management invested money for the first time in the firm, which has now raised $368.5 million today.

Company founder Ken Li said the latest round of financing ($175 million) will be used to boost operations in loans services and to build relationships with new banks and lenders. Tech Crunch reports that the company is now on pace to file for an IPO within the next 18 months.

“Our ambitions have grown,” Lin told the Financial Times. “Once you are on Credit Karma, we can tell you exactly which loans you are overpaying for.”

The latest round for the seven-year-old loan and credit services firm values it at $3.5 billion. It currently offers services to 40 million American customers. Credit Karma is now one of 113 private firms valued at more than $1 billion, according to CB Insights. The financial technology industry continues to see significant growth, as 14 of the billion-dollar firms are represented.

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