UK-based fintech ClearScore has acquired credit marketplace Aro Finance as part of its strategy to grow its presence in Embedded Finance.
Founded in 2015, ClearScore delivers credit information and an online financial marketplace, serving nearly 24 million users worldwide. The company is backed by investors including Blenheim Chalcott, Brightbridge Ventures, Lead Edge Capital, and QED.
This acquisition, ClearScore's second after purchasing Money Dashboard in 2022, adds a B2B2C channel to its operations. Aro Finance integrates its credit marketplace within the infrastructure of digital partners such as Asda and Argos.
ClearScore's recent initiatives include the launch of Clearer, a debt consolidation loan technology introduced last year. This tool allows users to repay existing debts automatically when taking out a new loan. The acquisition of Aro Finance is expected to enhance this offering by increasing borrower options.
In a statement, ClearScore noted that Aro Finance will provide greater choice for prospective borrowers, particularly as the company develops and scales its debt consolidation technology.
ClearScore's co-founder and CEO highlighted the strategic value of the acquisition, saying it allows the company to grow into complementary areas such as Embedded Finance and secured second-charge lending. He added that diversifying both its market channels and product range would benefit ClearScore's users and lending partners.
ClearScore had previously been on the verge of a sale to FTSE 250-listed Experian, but the deal was halted due to antitrust concerns. This latest acquisition reflects the company's focus on organic growth and strategic expansion in the financial technology sector.
In July 2024, ClearScore secured GBP 3.4 million funding from Fair4All Finance to develop a debt consolidation loan technology for people in financially vulnerable circumstances in the UK.
According to the official press release, the proposition from ClearScore, named ‘Clearer’, allows direct settlement of consumer debts, thereby eliminating the risk that the funds are not used to pay off existing credit cards and loans.
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