Personal finance company Credit Karma goes deeper into the fintech market with the acquisition of San Francisco-based Haven Money. Under the said deal, the five-person company will cease to operate as an independent firm after December 15, 2019, and will instead work as part of Credit Karma.
“Today, we build on that momentum and start a new chapter. Going forward, we are excited for the opportunity to help over 100 million Credit Karma members make financial progress,” said Haven in an online post. “We appreciate the trust you’ve placed in us and the feedback you’ve given along the way. You’ve helped shape Haven into a product we’re truly proud of and we thank you for being a part of this journey with us.”
Although the terms of the deals were not disclosed, the acquisition has been revealed to be part of the Karma’s wider effort to “play an active role” in serving their customers, reported Crunchbase in an interview with Jagjit Chawla, vice president and general manager of Tax and Savings at Credit Karma.
“The industry of neobanks is trying to do a lot of different things,” Chawla said. “I don’t intend for us to ever become a bank. But we still operate in a highly regulated financial industry.”
Founded in 2017, Haven Money operates as an expert financial management tool that enables users to calculate and automatically save an appropriate sum of money based on their income and spending.
With the said acquisition, Haven Money advises its clients to withdraw their money before December 15. The company also assured that those who have signed up for 401k management will obtain a prorated refund and that the firm will contact customers in the new year to extend any information necessary to help file their taxes.
The acquisition marks Credit Karma’s seventh transaction up to date.