BillGuard, a Tel Aviv-based startup that developed a crowdsourced security application for personal finance, is being acquired by the U.S. peer-to-peer lender Prosper Marketplace, the two companies announced on Thursday.
The two sides didn’t provide the financial terms of the sale, but industry sources estimate that San Francisco-based Prosper, better known as propser.com, paid $40 million in cash and shares.
BillGuard’s app, which works in the United States, helps consumers monitor bank and credit card transactions and receive alerts for hidden fees, billing errors and scams. BillGuard said that since it was founded in 2010, it has alerted users to more than $75 million in unauthorized charges. The app’s 1.3 million registered users share information about any unjustified charges they receive.
“This will be a transformative acquisition for Prosper Marketplace and for the marketplace lending industry,” said Prosper CEO Aaron Vermut. “Until now, nobody has brought together marketplace lending and personal finance management to deliver an offering that truly empowers, protects and educates consumers.”
Since its founding by Yaron Samid, the current CEO, and Raphael Ouzan, the chief technology officer, BillGuard has raised $17 million. It backers include blue chip investors Bessemer Venture Partners, Khosla Ventures, Innovation Endeavors, the venture capital fund founded by former Google CEO Eric Schmidt, and Founders Fund, which was started by former PayPal executive Peter Thiel.
BillGuard plans to significantly expand its payroll after the acquisition, raising the number of employees from 25 to 100 within the next six months.
Prosper says it originated $1.6 billion in loans through its platform in 2014 and expects to more than double that in 2015. The company has raised north of $350 million in capital, including a $165 million round back in April that valued it at almost $2 billion.
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