Six months after personal finance app Truebill brought in a $17 million Series C round, it is supporting demand of its services with $45 million in Series D funding to give it a valuation of $500 million, Yahya Mokhtarzada, co-founder and chief revenue officer, told Crunchbase News.
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The Maryland-based platform, founded in 2015, provides financial management tools to enable users more visibility and control of their money in an effort to improve their financial health. Those include finding and canceling unnecessary subscriptions, spending insights, bill negotiation, credit reports, budgeting and pay advance.
This time around, Accel led the round and was joined by existing backers Bessemer Venture Partners, which led the Series C, Cota Capital and Eldridge Industries. The new funding brings Truebill’s total funding to $85 million, according to the company.
Inside the Series D
Since November, Truebill has grown at a rapid pace, gaining 3.5x year-over-year revenue growth and more than doubling its headcount to over 100 people, Mokhtarzada said.
“We’ve built out a product roadmap and are offering features no one else is tackling from a personal financial toolset,” he added.
Although still fresh from the Series C, Mokhtarzada noted there was “a huge amount of inbound interest” from investors who wanted to get involved. Mokhtarzada, who started Truebill with his brothers, co-founder and CEO Haroon Mokhtarzada, and CTO Idris Mokhtarzada, contemplated going with a growth fund or a traditional venture capital fund.
“The timing seemed right as the market was hot,” he said. “We discussed that if we took more capital, what we would do with it. We made a list, and it reaffirmed our belief that we should accelerate.
“The chance to get Accel in was appealing,” Mokhtarzada added. “We are really thrilled with Accel’s caliber. As we looked at the opportunity, we thought there was a benefit in going with a traditional firm that would be more involved, put in more resources, and give more guidance on how to get to more than a $1 billion valuation.”
Over at Accel, the feeling is mutual. Fintech has been a theme for the early-stage and growth firm for a while, and it was attracted to the high engagement of consumers running their financial lives through Truebill, Partner Nate Niparko said in an interview.
He said the business has hit its stride and is growing exponentially, but with the size of the opportunity and how many people Truebill can touch, it is just a fragment so far.
“We believe a big business is being built,” he said. “This is ‘Day One’ for Truebill related to what they have in store for being the pulse and lifeline of how people manage their financial lives. There is a lot of fragmentation among offerings. Our financial lives are becoming spread out and Truebill is the glue pulling all of that together.”
In addition to revenue and employee growth, Truebill’s active user base grew from 1 million to 2 million and is now analyzing more than 200 million monthly transactions for more than $40 billion in monthly transaction volume.
Mokhtarzada intends to use the new funding to grow the company’s data science and machine-learning team. With an eye on financial prediction, Truebill will provide insight on when a user’s account will overdraft and then be able to either push money from another account or float them the funds until their next paycheck.
Other new features in the pipeline include tracking assets and debt over time to provide actionable insights for improvement, an autopilot feature that will build savings in the background, and a web platform. He also discussed a future “grow tab,” which will provide real-time financial standings — a full picture of someone’s finances, credit score, etc., all in one place.
Mokhtarzada also believes the company is at the point now when it can get into real brand building to turn Truebill into a household name. To drive that goal, some of the funding will go into heavy advertising via out-of-home, podcasts/influencers, billboards and television, on top of the social network and search engine promotions the company is already doing, he said.
Illustration: Dom Guzman
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