October 6, 2014
Yodlee, known for enabling consumer financial apps, raised $75 Mn through an initial public offering in the past week. The offering has been priced at $12 per share making the company valuation at about $340 Mn. The IPO is being run by Goldman Sachs, Credit Suisse and Bank of America Merril Lynch.
Yodlee is a technology and applications platform and powers digital financial solutions in the cloud. Yodlee is a central aggregator for a variety of financial apps oriented towards consumers and small businesses. It gathers data for a number of consumer-facing programs, such as Credit Karma, LearnVest and BillGuard. More than 750 companies in over 10 countries use the Yodlee platform to power innovative fintech offerings for consumers.
Yodlee’s Financial Cloud allows banks, internet service companies and third-party financial app developers to track consumer financial information. Yodlee has a strong base of about 16.5 Mn consumers through which it derives its subscription fees. Yodlee’s cloud-based services are offered by banks to customers to help with services ranging from tax preparation to credit-history tracking. The Yodlee Platform enables experiences ranging from personal financial management to full payments and money movement, opening up a wealth of new interactions that generate more profitable and satisfied consumers, all in a modular, SaaS based deployment model.
Recently the company had launched an Enterprise API, custom-built and co-branded for individual financial institutions. Yodlee’s API also allows geo-location information to be added to financial data. In a way, it allows developers to add personalization to app offerings. This further creates new revenue streams by providing the data to companies looking to make their services more relevant.
Yodlee gives its customers a single view across all their accounts. It also enables banks to see how customers are managing savings, loans and investments. Banks further use this information to design better products. Yodlee’s patented data, payments and risk management utility supports more than 12,500 account sources and over 100,000 different account types.
Yodlee’s robust portfolio of personal financial management services will help it attain a stronger financial position post the current IPO. The company has a growing number of financial institutions backing it which is driving its global reach. The company currently boasts of prominent backers like Bank of America and investment firms such as Warburg Pincus, Institutional Venture Partners and Accel Partners.