The acquisition will help NerdWallet expand its options for financial guidance and financing options for SMB owners, giving it a bigger piece of the SMB market and “advancing its mission of providing clarity for all of life’s financial decisions,” according to the release.
NerdWallet has found it profitable to expand its portfolio of services, with additions of student loan services, investing, insurance and mortgages and more over the years, the release stated.
Fundera represents a foray into the SMB field, which has become pertinent due to its fast growth. One of the biggest challenges for SMBs is the lack of capital, with the pandemic’s economic downturn causing even more stress, the release stated. According to a recent survey, around 70 percent of U.S. SMBs applied for financial aid from the government’s Paycheck Protection Program (PPP).
“Although we offer free tools and content, we’ve never been able to fully support small business owners — that changes today,” said NerdWallet Co-Founder and CEO Tim Chen. “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.”
Fundera CEO and Founder Jared Hecht said the environment for SMBs can sometimes be like the “wild west.”
“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,” he said. “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.”
Tax software company Intuit, which runs TurboTax and QuickBooks, eyed buying NerdWallet, alongside Credit Sesame, Finicity and CreditKarma, the last of which it did end up purchasing early this year. The deal for NerdWallet didn’t end up going through.
NerdWallet was founded in 2009 and had raised $105 million in funds as of March.