Rocket Companies Acquires Personal Finance Startup Truebill for $ 1.275 Billion

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Rocket Companies Inc., a Fortune 500 financial services firm, today noted It acquires fast-growing personal finance startup Truebill Inc. for $ 1.275 billion.

Rocket Companies, listed on the NYSE, is present in several different markets. The company focuses primarily on the financial services industry, with its subsidiary Rocket Mortgage ranked as the largest mortgage lender in the United States. Rocket Companies is also active in real estate, operates an online automotive marketplace, and competes in several other areas.

The acquisition of Truebill will help Rocket Companies establish a presence in another segment: personal finance. Truebill operates a popular personal finance app of the same name that has an installed base of 2.5 million users.

The Truebill app allows consumers to organize all of their subscriptions, along with key details such as the price of individual subscriptions, into one list. The app promises to make it easier to track expenses and cancel services. For further measurement, Truebill may manage the process of canceling subscriptions on behalf of users.

Over the years, Truebill has built a range of additional financial features to complement its core subscription management capabilities. The startup offers savings accounts and a credit card. Through the Truebill app, users have access to budgeting features that make it easy to track expenses.

“We’re very impressed with what Truebill has created – providing a simple and intuitive customer experience to help our users save money,” said Jay Farner, CEO of Rocket Companies. “The company is perfectly suited to the Rocket platform”

Rocket believes that Truebill’s app and other services will complement its existing financial offerings. Rocket Companies mainly specializes in large transactions such as mortgages. Truebill, in turn, aims to help users manage more day-to-day financial tasks such as canceling subscriptions. Using the functionality of Truebill, Rocket hopes to boost customer engagement by “delivering value between the big financial transactions Rocket Companies are known for.”

The $ 1.275 billion Rocket is paying to acquire Truebill would represent a major win for the startup’s investors. According to PitchBook research cited by TechCrunch, Truebill received a valuation of $ 530 million after its last round of funding earlier this year. Overall, the startup has raised around $ 83.9 million in funding.

The acquisition price of $ 1.275 billion reflects the rapid growth of Truebill. Truebill’s installed base, which currently includes more than 2.5 million users, has doubled in the past year, as has its revenue. Rocket today revealed that Truebill is on track to hit $ 100 million in annual recurring revenue.

Rocket has also grown rapidly. The company, which went public on the NYSE last August, reported net sales of $ 3.1 billion in its fiscal third quarter. This is a 96% improvement from the third quarter of 2019. The company also reported net profit of $ 1.4 billion, which is higher than the total annual net profit it recorded in 2019.

Image: Truebill

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