Yodlee

Envestnet Yodlee
Company typeSubsidiary
IndustryFinancial
Founded1999; 25 years ago (1999)
FounderVenkat Rangan
Headquarters
Redwood City, California
,
United States
Key people
Farouk Ferchichi
(President)
Stuart DePina
(Former President)
Anil Arora
(Ex CEO)
ParentEnvestnet

Yodlee is a web application software company that provides consumer-permissioned data aggregation, consolidating information from multiple accounts (credit cards, bank accounts, investments, etc.) by using open banking APIs.

Origins and history

Yodlee was started in 1999 by Venkat Rangan (vice chancellor of Amrita University), Sam Inala, Ramakrishna "Schwark" Satyavolu, Srihari Sampath Kumar (all formerly at Microsoft), and Sukhinder Singh (earlier at Amazon.com and Junglee).[1]

Yodlee started operations in Sunnyvale, California and then moved its headquarters to Redwood Shores, California. It also has offices in London, UK, and Bangalore, India. In 2000, Yodlee merged with its main competitor in the data aggregation space, an Atlanta-based company called VerticalOne, which was owned at the time by SecurityFirst, an internet banking firm.[2][3]

In 2010, Yodlee partnered with Y Combinator, providing its financial services platforms to all Y Combinator–funded companies.[4]

By 2010, Yodlee was said to have raised at least $116 million over its 10-year lifespan.[5] In a press release in June 2008, it was announced that Bank of America led a $35 million financing round. Existing Yodlee investors, including its largest shareholder Warburg Pincus along with Accel Partners and Institutional Venture Partners, participated in the financing round.[6]

As of 2013, Yodlee had over 45 million users, and over 150 financial institutions and portals (including 5 of the top 10 U.S. banks) offer services powered by Yodlee.[7][5]

On October 3, 2014, Yodlee went public on NASDAQ, trading under the symbol YDLE. It raised $75 million at $12 per share.[8] On August 10, 2015 Yodlee sold itself to Envestnet for a reported $660 Million.[9] As a result, it is no longer listed on the NASDAQ. In November 2017, Token partnered with Yodlee for payments and financial data aggregation.[10]

As of June 30, 2023, Envestnet | Yodlee had over 17 million data sources and 47 million users, and works with over 1,400 financial services and tech companies, including 18 of the top 20 U.S. banks.[citation needed]

Lawsuit

Yodlee encountered a controversy in which lawmakers claim that they are selling consumers’ personal financial data without proper consent, calling on the Federal Trade Commission to investigate the matter.[11] In August 2020, a class-action lawsuit was filed against Envestnet and Yodlee. The plaintiff, Deborah Wesch, claimed that she and other consumers were put at risk because the companies failed to adequately protect their consumer data and put in place sufficient security protocols.[12] Yodlee and Envestnet claimed that the consumers consented to have their data accessed, and that the consumers didn't experience any tangible injuries from the sale of their anonymized data.[13]

See also

References

  1. ^ "Yodleeing Their Way to the Top" (Press release).
  2. ^ "S1 Corporation Completes Acquisition of VerticalOne Corporation". PR Newswire. November 11, 1999. Retrieved March 25, 2017.
  3. ^ "Company Overview of VerticalOne Corporation". bloomberg.com. Bloomberg L.P. Retrieved March 25, 2017.
  4. ^ Rao, Leena (November 30, 2010). "Y Combinator and Yodlee Team-up To Give Startups Access To Financial Data". TechCrunch.
  5. ^ a b Arrington, Michael (September 18, 2009). "Mint Is Yodlee's YouTube". TechCrunch.
  6. ^ "Yodlee raises $35m funding". June 4, 2008.
  7. ^ Empson, Rip (July 6, 2011). "With Top Banks In Tow, Financial Service Provider Yodlee Hits 30 Million Users". TechCrunch.
  8. ^ de la Merced, Michael J. (October 2, 2014). "Yodlee, a Hub for Financial Apps, Raises $75 Million in I.P.O." DealBook. The New York Times. Retrieved September 28, 2019.
  9. ^ de la Merced, Michael J. (August 10, 2015). "Yodlee, a Hub for Financial Apps, Sells Itself to Envestnet". The New York Times. ISSN 0362-4331. Retrieved September 28, 2019.
  10. ^ Peyton, Antony (November 13, 2017). "Token and Envestnet | Yodlee team up for open banking". FinTech Futures. Retrieved November 14, 2017.
  11. ^ Tracy, Ryan (January 17, 2020). "Lawmakers Call for Investigation of Fintech Firm Yodlee's Data Selling". Wall Street Journal. ISSN 0099-9660. Retrieved August 16, 2021.
  12. ^ Berman, Jeff. "Envestnet, Yodlee Sued Over Consumer Data Collection". ThinkAdvisor. Retrieved July 12, 2022.
  13. ^ "Envestnet, Yodlee Say Consumers OK'd Access To Bank Data - Law360". www.law360.com. Retrieved July 12, 2022.