Consumer finance firm Credit Sesame eyes U.S. IPO -sources

·1 min read

By David French and Anirban Sen

June 15 (Reuters) - Credit Sesame is planning to file for a U.S. initial public offering that could value the credit checking and financial services provider at more than $2 billion, according to people familiar with the matter.

The San Francisco-based company is working with investment banks, including Goldman Sachs Group Inc, on its plans for listing in New York later this year, according to the sources, who cautioned that the IPO timing and valuation were subject to market conditions.

The sources spoke on condition of anonymity to discuss confidential information.

"We remain open to any outcome that allows us to continue on our mission to bring financial wellness and stability to all consumers," Credit Sesame said in a statement, declining to comment specifically on a possible IPO.

Goldman Sachs declined to comment.

Some financial technology firms such as Credit Sesame have seen their business boom during the COVID-19 pandemic, as more people do their banking online.

Credit Sesame launched in 2011 by providing consumers with free access to their credit scores and then expanded into recommending financial products. Last year, it launched an online banking service which rewards users with cash for improving their credit rating.

The company announced last week it had raised $51 million from private investors, including Healthcare of Ontario Pension Plan (HOOPP), Menlo Ventures and ATW Partners. It said it will use the capital to fund its expansion plans.

Rival personal finance advice provider NerdWallet has confidentially filed paperwork for its own U.S. IPO, sources told Reuters last month. (Reporting by David French in New York and Anirban Sen in Bengaluru; editing by Jonathan Oatis)

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