Truebill $1.275B Acquisition by Rocket - What We Can Learn

Web Friendly -

Truebill was acquired by Rocket for $1.275B in 2021. The purchase price is significantly higher than Truebill's initial valuation of $500 million, which shocked the entire Fintech industry. The acquisition will be paid for entirely in cash by Rocket, and the two parties finalized the deal last year.

It is evident that long-term success and increased multiples of recurring revenue are what Rocket wants to aim for. It will enhance its current low valuation multiple as a result of this. The purchase of Truebill is helpful in this regard.

How does Truebill make money?

To make money, Truebill hooks users on a monthly subscription once they try to use a function like a bill negotiation. These begin at just $3.99 per month but can add to a substantial passive income for Truebill over time.

Regarding the consumer market, Truebill has mastered the freemium model for B2B SaaS.

How did Truebill grow so fast?

In the field of Fintech, Truebill is widely regarded as one of the past decade's most impressive "zero to one" success stories.

The Mokhtarzada brothers, who started their business with an idea hatched in their Maryland basement, graduated from Y Combinator in 2016 and sold their company for more than a billion dollars five years later.

How does Truebill work?

The app's primary acquisition engine and the leading hook is still the ability to track subscriptions. It was the driving force behind Truebill's meteoric rise in in-app download rankings.

With tracking and alerts, the team made it very easy to keep track of bills. They also made it easy to cancel subscriptions in the app with just one tap. It was convenient; with two taps, they'd change the price for you.

With the innovation that Truebill had developed for years, it had become easier for consumers to track bills and easily subscribe or unsubscribe to apps.

In conclusion

Learn more by watching the clip below from our show Good Morning Marketers, as we talk about what we should learn from Truebills’ acquisition.

📺
Watch Good Morning Marketers on YouTube
🔊
Listen to Good Morning Marketers on Spotify

Clips from Good Morning Marketers Episode 18