NerdWallet acquires Fundera, helping SMB owners achieve financial goals
By Pavithra R
NerdWallet, an online personal finance website and app that provides financial guidance to more than 160 mn consumers every year has announced the acquisition of Fundera, the go-to financial resource for the 28 mn small and medium-sized businesses (SMBs) operating in the U.S.
Through the acquisition, NerdWallet expects to expand its financial guidance and financing options for SMB owners, thereby establishing a stronger foothold in the SMB market and advancing its mission of providing clarity for all of life’s financial decisions. The acquisition is NerdWallet’s second acquisition in the year, the company recently acquired Know Your Money.
NerdWallet has built a profitable and growing business, due in large part to its diversification efforts. The company has expanded its financial content and marketplaces in the past years to cover a variety of categories, including investing, insurance, mortgages, student loans, and more. The acquisition will continue growing and diversifying its business by expanding its offerings to the SMB market, which represents major growth potential for both the companies.
“We’ve always seen tremendous opportunity in providing small business owners with financial information and helping them compare and apply for the financial products that meet their unique needs. 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. We’re always looking to join forces with best-in-class companies that share our mission-driven, consumer-first perspective, and we’ve found that in Fundera. Together we will capitalize on the massive SMB market opportunity while driving great outcomes for small business owners.,” said Tim Chen, Co-Founder and CEO of NerdWallet.
The COVID-19 economic downturn has resulted in an extensive financial strain on SMBs. Founded in 2013, Fundera is a marketplace for small business financial solutions. Its in-depth knowledge of the SMB industry and commitment to providing business owners with suitable and innovative financing options makes it an ideal partner for NerdWallet as it expands into this growing market.
“It can be the wild wild west out there for small business owners. Finding the financial products and the guidance needed to start, grow and fund their businesses can be very challenging, and most small business owners don’t have a resource or partner to support them along their journey. Bringing transparency to this process and educating, empowering and advocating for business owners is so similar to what we see NerdWallet doing in the consumer space. We have always been inspired by how NerdWallet puts confidence and informed decision-making in the hands of consumers, and that’s what we do for small business owners. We’re excited to work with NerdWallet to continue helping business owners achieve their financial goals,” said Hecht.
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