Truebill, a personal finance app based in Silver Spring, will soon be acquired by Rocket Companies, the Detroit fintech business behind Rocket Mortgage, Rocket Homes and Rocket Auto, in a $1.275 billion cash deal. The acquisition was announced on Monday and is expected to close by the end of the year.
Currently, 2.5 million people use Truebill’s app to take control of their finances. The app was originally launched in 2016 as a service to negotiate users’ bills and cancel under-used subscriptions. It has since grown into a full budgeting and financial wellness platform. With Truebill, users can track spending, understand and improve their credit scores, create budgets and cancel subscriptions they may not have realized they were still paying for.
“By joining forces with the Rocket fintech powerhouse, we will be able to extend our reach and seamlessly connect consumers with even more services,” Haroon Mokhtarzada, Truebill co-founder and CEO, said in a statement. “The synergy between Truebill and the Rocket Companies platform could not be stronger, especially when you consider the importance of homeownership as the centerpiece of a healthy financial life.”
Rocket Companies is the parent company under which numerous real estate, mortgage and car loan businesses operate. These businesses help tens of millions of customers navigate applying for a mortgage, buying and selling their homes, purchasing a car and other large financial transactions.
By adding Truebill to its list of companies, Rocket Companies will be able to offer its customers comprehensive financial wellness services. Whether tracking small monthly subscriptions or paying down a car loan, Rocket will soon be able to give its customers end-to-end solutions to manage their finances.
“We are very impressed with what Truebill has created — providing a simple, intuitive client experience to help its users save significant money,” Rocket Companies CEO Jay Farner said in a statement. “The company is a perfect fit for the Rocket platform. Truebill’s work helping Americans keep track of their finances and providing guidance that leads to better financial outcomes follows the same philosophy as Rocket Companies — leveraging the power of technology to remove the friction from complex transactions — and applies it to everyday life.”
The acquisition is expected to add $100 million in annual recurring revenue to Rocket’s $1.3 billion annual servicing fee income, according to the company.
Truebill has grown significantly this year. Not only did its annual revenue double compared to last year, but the company was also ranked #19 on the Deloitte 2021 Technology Fast 500 list and #1 on the Information’s list of the 50 Most Promising Startups. Truebill also raised a $45 million Series D round in June to grow its team.
Currently, Truebill is hiring 36 positions across various departments. Rocket Companies is also hiring 72 people for positions at Rocket Auto and Rocket Mortgage.