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FinTech startup BillGuard sold for $40-50m

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Wednesday, September 30th, 2015

As reported in Globes;

San Francisco-based Prosper Marketplace has bought Israeli company BillGuard, which has a financial analytics product.

Israeli startup BillGuard has been acquired by peer-to-peer lending company Prosper Marketplace. No financial terms were disclosed but market sources believe the firm was valued at $40-50 million, part of which was paid in cash and the rest in Prosper stock.

Tel Aviv-based BillGuard helps its users track, manage, and protect their finances and credit. It was purchased by the San Francisco-based online lender, which hopes to integrate the former’s financial analytics suite into the toolkit it offers its borrowers and investors.

“This will be a transformative acquisition for Prosper Marketplace and for the marketplace lending industry. Until now, nobody has brought together marketplace lending and personal finance management to deliver an offering that truly empowers, protects and educates consumers,” said Prosper CEO Aaron Vermut.

BillGuard, founded in 2010 by Yaron Samid and Raphael Ouzan, has 1.3 million registered users and has flagged more than $70 million in unauthorized charges to its clients. Its Google Play and App Store iterations have won multiple industry awards; Google even named it as a Best App of 2014.

It has raised $16.5 million from several investors, including Innovation Endeavors, Khosla Ventures, Bessemer Venture Partners, and Ourcrowd.

“Both BillGuard and Prosper Marketplace are focused on empowering consumers to be financially secure, smart and successful,” said BillGuard CEO Yaron Samid. “Joining forces means that BillGuard can continue to innovate while contributing to the evolution of Prosper Marketplace as a full-service financial management company.”

Prosper, valued at $2 billion, is in the midst of the IPO process. It has raised more than $350 million, including a massive round of $165 million in April. It hosted $1.6 billion in loans in 2014 and expects to double that figure in 2015, after growing 350% from 2013.

“Prosper’s explosive growth can be attributed to providing a truly consumer-focused alternative to traditional bank lending,” said BillGuard CTO Raphael Ouzan. “Our goal is to develop BillGuard from within Prosper to become a comprehensive financial well-being app, offering greater transparency and intelligent recommendations that empower consumers to make smarter financial decisions.”