Just about a year ago, my colleague Charles Laughlin posted this on Localogy Insider introducing our audience to Fundera, a small business lending marketplace. Today we learn that NerdWallet has acquired Fundera.
NerdWallet is a San Francisco-based start-up that has raised almost $140 million according to Pitchbook. The company describes itself this way on its website. “We’re on a mission to provide clarity for all of life’s financial decisions. Our tools and advice make it easy to expertly pay off debt, choose the best financial products and services (think credit cards and insurance) and tackle major life goals, like buying a house and saving for retirement.”
NerdWallet is driving deeper into the SMB space with the Fundera acquisition. Fundera, which itself has raised $25 million, was founded in 2013 to offer SMBs a lending marketplace. While NerdWallet provides content and tools to help SMBs make smarter financial decisions. Combining NerdWallet’s tools with Fundera’s lending marketplace could be very compelling.
According to NerdWallet CEO Tim Chen, “Although we offer free tools and content, we’ve never been able to fully support small business owners — that changes today, Fundera has been one of our partners for several years and their deep understanding of the SMB market, the long-standing, trusted relationships they’ve built with both lenders and business owners, and their commitment to putting the needs of small business owners first is really unique and impressive.”
Transformative Times for SMBs
Of course, it’s no secret that we’re in the midst of a transformative time for SMB owners. Hundreds of millions in investment capital is flowing into companies that are building SaaS solutions for SMBs. This ranges from marketing to human capital management to finance. And this money is flowing at a time when there’s a generational shift happening in the composition of the SMB market. Millions of Baby Boomers are exiting through retirement, while millions of millennials are filling the void.
We know that millennials will run their businesses very differently than their predecessors. Meanwhile, companies like NerdWallet are positioning themselves to take advantage of these substantive shifts. For NerdWallet, this acquisition gets them one step closer to this goal.
By the way, this is NerdWallet’s second acquisition this year. The company previously acquired U.K.-based Know Your Money. NerdWallet says it’s been growing and profitable for the past several years.
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