Credit Karma, the credit and finance management platform has announced its first acquisition of Snowball, a mobile notifications app company for amount unknown. The acquistion was described as acqui-hire and deal does not consist of any intellectual property of Snowball.
Founded in 2014 and based in San Francisco, Snowball is an Android-focused app that enables its users to customize and interact with their cell phones notifications. Founded by Anish Acharya and Jeson Patel, it acts as a universal inbox for all incoming chats. Though the app had more than 250,000 users, it did not take off as hoped. Following the closure of the deal, the app would be removed from the Google Play Store in the near future.
The acquisition comes right at the times when Credit Karma is change its strategy to address its 45 million wide user base among which most of them access the platform through cell phones. Snowball has the kind of expertise that the company is interested in bringing into the team as it works to improve its own set of mobile applications in the near future. Ryan Graciano, CTO of Credit Karma said, “We are seeing a huge movement of consumers towards mobile, particularly in younger demographics. Android is a key platform for us. And these guys have really amazing experience on Android, in paricular.”
Further to the acquisition, five of the six members of Snowball’s team will join Credit Karma, Snowball CEO Anish Acharya will become Credit Karma’s senior director of product management. About the acquisition Acharya said, “For the Snowball team, it was all about the people and mission. We had a great existing relationship with the ex-Googler and Credit Karma CPO Nikhyl Singhal, and as we got to know Ryan and the rest of the leadership team, we were blown away by their caliber, culture and the commitment to the mission.”
Based in San Francisco, Credit Karma has over 45 million total users who access its financial services on mobile devices. The company raised $175 million this summer at a $3.5 billion valuation.