Rocket Companies Inc., a Fortune 500 financial services company, today said it’s acquiring fast-growing personal finance startup Truebill Inc. for $1.275 billion.

NYSE-listed Rocket Companies has a presence in several different markets. The firm’s main focus is the financial services sector, with its Rocket Mortgage subsidiary ranking as the largest home lender in the U.S. Rocket Companies also has a real-estate business, operates an online car marketplace and competes in several other areas.

The acquisition of Truebill will help Rocket Companies establish a presence in yet another segment: personal finance. Truebill operates a popular personal finance app of the same name that has an installed base of 2.5 million users.

Truebill’s app enables consumers to organize all their subscriptions, along with key details such as the individual subscriptions’ price, in a single list. The app promises to make it easier to track expenses and cancel services. For added measure, Truebill can manage the process of canceling subscriptions on users’ behalf. 

Over the years, Truebill has built an array of additional financial features to complement its core subscription management capabilities. The startup offers savings accounts and a credit card. Through the Truebill app, users have access to budgeting features that make it easier to track spending.

“We are very impressed with what Truebill has created – providing a simple, intuitive client experience to help its users save significant money,” said Rocket Companies Chief Executive Officer Jay Farner. “The company is a perfect fit for the Rocket platform”

Rocket believes that Truebill’s app and other services will be complementary to its existing financial offerings. Rocket Companies mainly specializes in large transactions such as mortgages. Truebill, in turn, focuses on helping users manage more day-to-day financial tasks such as canceling subscriptions. Using Truebill’s features, Rocket hopes to boost customer engagement by “providing value between the large financial transactions that Rocket Companies is known for.”

The $1.275 billion that Rocket is paying to acquire Truebill reportedly represents a major win for the startup’s investors. According to PitchBook research cited by TechCrunch, Truebill received a $530 million valuation after its most recent funding round earlier this year. Overall, the startup has raised about $83.9 million in funding.

The $1.275 billion acquisition price is a reflection of Truebill’s rapid growth. Truebill’s installed base, which currently includes more than 2.5 million users, has doubled over the past year and so has its top line. Rocket disclosed today that Truebill is on track to reach $100 million in annual recurring revenue.

Rocket has been growing rapidly as well. The firm, which went public on the NYSE last August, reported net revenue of $3.1 billion in its third fiscal quarter. That represents a 96% improvement from the third quarter of 2019. The company also reported net income of $1.4 billion, which is more than the total annual net income it logged in 2019. 

Image: Truebill