Thursday 24 June 2021 5:39 pm

UK credit score giant Clearscore heading for unicorn status after $200m Invus injection

Daily news reporter in City A.M.'s London newsroom

Clearscore, a free-to-use credit check company based in London, has reportedly accepted a $200m (£144m) investment from US-based fund Invus Opportunities.

As reported by Sky News, the deal values the company at $700m (£503m), placing it on track for unicorn valuation.

The company plans to use the funding to grow its staff numbers, product offerings and customers.

Clearscore is able to generate profits by earning commission from credit products it recommends to over 14m users, 11m of which are UK-based.

Also operating in Australia and South Africa, the company was founded in July 2015 by chief executive Justin Basini, Dan Cobley and chairman Nigel Morris. It was the first UK company to offer free credit scores and reports.

While its leadership team will remain in place, the deal will see Invus Opportunities’ Benjamin Tsai join the ClearScore board.

In 2019, Experian backed out of a £275m merger with its rival Clearscore after it expected the acquisition to be blocked by the Competition and Markets Authority.