Credible Labs

Credible Labs Inc., commonly known as Credible, is a financial technology company headquartered in San Francisco. The company also does business through its subsidiary Credible Operations, Inc. Its online marketplace offers consumers the ability to compare and refinance loans, mortgages, and other financial products from lenders. Credible became a subsidiary of Fox Corporation in 2019. In December 2021, Credible acquired digital insurance platform Young Alfred, adding various kinds of insurance including home, auto, and pet to its platform.[1]

Credible Labs, Inc.
The word "credible" in lowercase blue text, with a green dot in the letter "i"
Logo as of 2021
Type of businessSubsidiary
Type of site
Financial technology
FoundedNovember 20, 2012 (2012-11-20)
Headquarters
San Francisco, California
,
U.S.
Key peopleStephen Dash (CEO, founder)
Industry
  • Personal finance
  • Fintech
ProductsOnline consumer marketplace for financial products, including loan refinancing and mortgages
ParentTubi Media Group (Fox Corporation) (67%)
URLcredible.com

Products and services

The Credible marketplace allows consumers to compare financial products from multiple providers side by side. The company itself is not a lender, a bank, or a credit card issuer. Instead, its integrations with lenders and credit bureaus allow the company to provide pre-qualified rates based on a consumer's credit history, a capability that distinguished the company from comparison sites that only provide generic rate information.[2] Dash has analogized Credible's business model to those of travel search engines like Kayak and Expedia, which show ticket prices for specific bookings and allow users to comparison-shop among competing offers, noting that Credible offers a similar platform for financial services.[3] By 2018, the company's marketplace included 38 lending partners.[3]

The company's platform is primarily accessible through its website and has also become available through integrations with third-parties like Radius Bank,[2] Fidelity Investments,[4] and Morgan Stanley.[5]

History

The company was founded in 2012 by Australian entrepreneur Stephen Dash. Credible originated as a platform for refinancing student loans. Its online consumer loan marketplace has subsequently expanded to include loan origination, credit cards, personal loans, and mortgages.[6][7]

The company was incorporated in Delaware on November 20, 2012, as Stampede Labs Inc., before changing its name to Credible Labs Inc. in December 2013.[8] The company has been headquartered in San Francisco since its founding. American investor Ron Suber sat as chairperson of Credible's board of directors between 2015 and 2019.[9] Australian businessman Alex Waislitz was an early investor.[10]

In December 2017, Credible Labs became a public company via an initial public offering on the Australian Securities Exchange (ASX). It was the year's largest technology IPO on the ASX, raising US$50 million.[11] Dash chose the ASX because Credible's early investors were predominantly located in Australia and Asia and because they believed there was a relative scarcity of financial technology companies on the ASX as compared to the major American stock exchanges.[6][12]

In 2018, the company opened a second office in Durham, North Carolina, to expand its marketplace to mortgages. At launch, the company initially offered mortgage brokerage services in 20 states.[13][14] As of January 2021, it maintained active mortgage broker's licenses in 47 states through its subsidiary, Credible Operations, Inc.[15] By August 2019, Credible employed 135 people across its two offices.[16]

In October 2019, Fox Corporation acquired a 67-percent majority ownership stake in Credible for US$265 million (equivalent to A$585 million).[17][18][19] At first, the terms of the deal were questioned by earlier investors like Waislitz, who expressed concern that the acquisition would represent a "bargain" because he believed the company's valuation had the potential for rapid growth in the near future.[10][20] Nonetheless, Credible's stockholders unanimously voted to approve the acquisition on October 14.[21] As a result of the acquisition, Credible became a privately held company again and was delisted from the ASX.[22]

References
  1. "Credible Acquires Digital Insurance Platform Young Alfred to Further Expand Its Consumer Finance Marketplace". au.finance.yahoo.com. Business Wire. Retrieved May 30, 2022.
  2. Hurst, Samantha (October 17, 2019). "Radius Bank Announces New Partnership with Credible for Digital Marketplace Expansion". Crowdfund Insider. Archived from the original on November 12, 2020. Retrieved January 20, 2021.
  3. Ohnesorge, Lauren (January 23, 2019). "San Francisco fintech plans to double in Durham". Triangle Business Journal. Archived from the original on January 20, 2021. Retrieved January 20, 2021 – via bizjournals.com.
  4. Tompor, Susan (November 4, 2019). "Who's dealing with the biggest student loan payments?". USA Today. Archived from the original on November 11, 2019. Retrieved January 20, 2021.
  5. Manganaro, John (September 12, 2019). "Morgan Stanley Expands Student Loan Capabilities". PlanAdviser. Archived from the original on October 23, 2020. Retrieved January 20, 2021.
  6. Verhage, Julie (December 7, 2017). "San Francisco's Credible Raises $50 Million in Australian IPO". Bloomberg.com. New York: Bloomberg News. Archived from the original on December 13, 2017. Retrieved January 20, 2021.
  7. Yeo, Melissa (December 8, 2017). "The year's biggest tech IPO gains 9pc on debut after raising $67m". Stockhead. Archived from the original on November 25, 2020.
  8. "Annual Report for the Financial Year Ending 31 December 2018" (PDF). Credible Labs Inc. December 31, 2018. Archived (PDF) from the original on April 12, 2019 – via openbriefing.com.au.
  9. Calvey, Mark (October 7, 2019). "Exclusive: Prolific fintech investor Ron Suber joins board of startup as he seeks next big winner". San Francisco Business Times. Archived from the original on January 20, 2021. Retrieved January 20, 2021 – via bizjournals.com.
  10. Kruger, Colin (August 5, 2019). "Billionaire Alex Waislitz questions Credible Labs sale to the Murdochs". The Sydney Morning Herald. Archived from the original on September 30, 2020.
  11. Smith, Paul (December 7, 2017). "Credible founder Stephen Dash comes home for biggest ASX tech IPO of 2017". Australian Financial Review. Sydney: Nine Publishing. Retrieved January 20, 2021.
  12. Whyte, Jemima (May 29, 2018). "Credible Lab CEO Stephen Dash likens ASX to 'junior Nasdaq'". Australian Financial Review. Sydney: Nine Publishing. Archived from the original on May 30, 2018. Retrieved January 20, 2021.
  13. Calvey, Mark (October 11, 2018). "Fintech super-investor Ron Suber sees growth potential in a surprising place". San Francisco Business Times. Archived from the original on January 20, 2021. Retrieved January 20, 2021 – via bizjournals.com.
  14. Kitney, Damon (November 5, 2018). "Credible Labs in pole position to take on US mortgage market". The Australian. Canberra. p. 20. ProQuest 2129060934.
  15. "State Licenses and Disclosures". Credible Labs Inc. Archived from the original on January 20, 2021. Retrieved January 26, 2021.
  16. Lang, Kylie (August 10, 2019). "In-Credible Rise to the Top". The Courier-Mail. Brisbane. p. 26. ProQuest 2270105033.
  17. Thompson, Sarah; Macdonald, Anthony (August 5, 2019). "Fox bids $585m for student loans business Credible". Australian Financial Review. Sydney: Nine Publishing. Archived from the original on August 4, 2019. Retrieved January 20, 2021.
  18. Mason, Max (August 5, 2019). "Credible Labs founder rockets onto Rich List". Australian Financial Review. Sydney: Nine Publishing. Archived from the original on August 5, 2019. Retrieved January 20, 2021.
  19. Nickolai, Nate (August 4, 2019). "Fox Corp. to Buy $265 Million Majority Stake in Credible Labs". Variety. Archived from the original on November 25, 2020. Retrieved January 20, 2021.
  20. Chanticleer (August 5, 2019). "Small investors query Credible's Murdoch deal". Australian Financial Review. Sydney: Nine Publishing. Archived from the original on August 5, 2019. Retrieved January 20, 2021.
  21. "Credible Labs Stockholders Approve Proposed Acquisition by Fox Corp". RTTNews. October 14, 2019. Archived from the original on November 10, 2019. Retrieved January 20, 2021 – via NASDAQ.com.
  22. "Fox Corporation Completes Acquisition of 67% of Equity of Credible Labs" (Press release). New York and Los Angeles: Fox Corporation. PR Newswire. October 17, 2019. Archived from the original on November 29, 2020. Retrieved January 20, 2021.
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