Credit Karma is a site that many people are familiar with, thanks to its advertising campaigns. The site allows people to get their credit scores for free. Demographically speaking, the type of people that are expected to check their credit scores regularly are from a more mature crowd than most Web2.0/social/app type of user.
Basically, young people don't tend to check these numbers often. With that challenge in mind, Credit Karma made the first company acquisition of its young history as it purchased Snowball. Snowball is a mobile application that prioritizes mobile notifications on the Android platform. No financial terms were disclosed at this time.
The play opens up a potential new field of new users from a different, younger demographic. Additionally, more and more of the spectrum is shifting to mobile platforms. The idea behind this acquisition is that Credit Karma will be able to use Snowball's capabilities to push information to mobile messaging systems. Snowball makes this possible through the development that it has been through since the company's inception in 2010. The push technology raises app engagement, meaning information doesn't have to be sought by the user, it can simply be authorized and delivered as the user wishes.
Credit Karma is not much older itself, as it was founded in 2007. Despite the free element of its service, the company has big momentum going for it and produces enough revenue to be valued at $3.5 billion. In all, the company has attracted $368.5 million in funding, which includes a $175 million round that closed back in June. The move towards an experience-focused product delivery system on a mobile platform is a powerful play that lands its platform right in the middle of one of the most dynamic segments for consumer business.
Providing product value for a younger crowd in a green field of marketing opportunity figures to pay dividends. It is a pure example of utilizing the platforms of mobility and apps to reach out to a fresh audience.