It is looking to build out its decentralized platform
Rocket Mortgage’s parent company has agreed to buy Truebill, a personal finance app that recently ranked #19 on the Deloitte Fast 500 list of the fastest-growing technology and life sciences companies in North America.
Rocket Companies has entered an agreement to acquire Truebill for $1.275 billion in cash. The app manages consumers’ subscriptions, tracks their spending, helps improve credit scores, and renegotiates cable and telephone bills on the customer’s behalf. Since its launch in 2015, Truebill has grown its user base to 2.5 million members and currently analyses $50 billion in monthly transaction volume.
Rocket Companies CEO Jay Farner said Truebill is a “perfect fit for the Rocket platform,” which includes Rocket Mortgage, Rocket Homes, and Rocket Auto. Rocket intends to use Truebill’s technology to create a “decentralized destination for consumers to manage their entire financial lives.”
“We are very impressed with what Truebill has created – providing a simple, intuitive client experience to help its users save significant money,” Farner said. “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.”
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Rocket expects the new line of business to boost its monthly revenue. The company’s mortgage servicing operations currently generate $1.3 billion in servicing income on an annualized basis. Rocket Companies has 2.5 million serviced clients and claims to have an industry-best retention rate of 91%. Truebill is on track to generate $100 million in annual recurring revenue in 2021, more than double that of 2020.
“What my co-founders and I originally created as a subscription cancelation app has become so much more. Now, millions of Americans are trusting us to help them take control of their financial lives,” said Haroon Mokhtarzada, co-founder and CEO of Truebill. “By joining forces with the Rocket fintech powerhouse, we will be able to extend our reach and seamlessly connect consumers with even more services. 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.”
The deal is expected to close before the end of the year.
