Rocket Money: Turning Subscription Hell into a $1B+ Money Management Platform
The story of how this YC-backed platform scaled to millions of users, saved billions for consumers and achieved a billion-dollar exit.
Known as Truebill before its acquisition by Rocket Companies, Rocket Money is one of the greatest fintech success stories of the 2010s.
Founded in 2015 by 3 brothers, accepted into YC in 2016, and sold for $1B+ in 2021- their growth has been nothing short of meteoric. Let’s dig in.
🎯 The Genesis
The Mokhtarzada brothers had been starting “companies” together ever since they were kids. Lemonade stands, lawn mowing services, snow shoveling.
And then came Truebill.
I looked at my credit card statement one day and saw a charge of $40 for in-flight wi-fi. I thought, “That's odd. I didn't fly this month.” I started digging in and realized I had paid $40 a month for 14 months before I caught it. My brother had the same experience with home security. So we set out to solve a pain point. - Yahya Mokhtarzada, CRO
Truebill started with a fundamental recognition - managing money is hard, and most people need help doing it effectively.
Especially when it comes to recurring but unwanted subscriptions.
To start using the app, a user connects their bank account. Then, Truebill analyses transactions and categorises them. A user can swipe through potential subscriptions to cancel upcoming bill charges as well as cancel auto spending month over month. The application additionally pulls out spending trends and helps users create a budget.
💡 Differentiating in the crowded fintech space
At the time, Crunchbase had over 1000 startups listed under the personal finance space, but very few were focused particularly on subscription savings.
The biggest competitor was Mint (acquired by Intuit in 2009), a budgeting app. While not specifically built for subscription management, it could categorize your expenses, and you could find unwanted expenses yourself.
However, several Mint users would complain about faulty categorization. For a budgeting app that helps you understand your spending breakdown, this is pretty damning.
Rocket Money differentiated itself through several key product decisions:
PMF was extremely strong. One user reported saving:
$660 annually on DirectTV
$120 annually on SiriusXM
$840 annually on car insurance
They gradually added features like Automated budgeting, Smart savings, Credit monitoring, Bill negotiation, and Net worth tracking.
🧪 Offline Marketing Mix
From the outset, the team recognized that traditional marketing channels could complement their digital acquisition efforts, but only if executed strategically. They didn't just throw money at billboards and TV - they brought the same data-driven rigour that defined their product development.
The team prioritized optimizing and scaling core channels before exploring new ones, strongly believing that there is always untapped potential for scale in existing channels.
1️⃣ The Scientific Method of Channel Testing
Rather than following industry "best practices," they started fresh with each channel, focusing on ease of scalability, measurement ease, and minimum required spends for quality learning.
You can’t just throw a bunch of money at a channel and hope for the best. You need to test, measure, and learn. - Ty Conner, Senior Director of Growth Marketing Offline at Rocket Money
Their philosophy was simple but powerful - even a marketing test that lost money or had a 0% ROAS was successful if it provided clear, actionable data and learnings.
2️⃣ The Out-of-Home Innovation
Instead of splashing their logo on Times Square, they zeroed in on "high dwell-time" locations - places where people had time to think about their finances:
Subway station platforms over fleeting highway billboards
Coffee shop partnerships in financial districts
But the real innovation was in measurement. They developed a system of 20+ geographic holdout tests and surveys that could isolate the impact of OOH advertising with precision.
What started as cautious experimentation evolved into a sophisticated multi-channel strategy. Each channel reinforced the others:
Streaming and linear TV ads built brand awareness
OOH placements served as consistent reminders
Digital retargeting closed the loop
This methodical approach to marketing helped them stand out in an increasingly crowded fintech landscape to the top of the app store charts and contributed to their eventual acquisition by Rocket Companies.
💰 Monetization with a User-First Philosophy
Rocket Money’s monetization strategy breaks away from traditional revenue-maximizing tactics, opting instead for a user-first philosophy that prioritizes trust, empowerment, and tangible value, helping them acquire and retain users.
1️⃣ Pay-As-You-Wish Premium: Freedom to Choose
The premium model is unconventional—users decide how much they want to pay (between $6 and $12) for advanced features. This approach is rooted in behavioural economics and psychology.
Empowers choice: Users feel in control, reducing resistance to upgrades.
Builds trust: Reciprocity encourages users to pay fairly when they see value.
Pricing insights: User data helps optimize pricing while retaining goodwill
2️⃣ Bill Negotiation Service: Pay Only for Value
Rocket Money’s success-based model ensures users only pay a percentage of the savings it negotiates on their behalf.
Risk-free value: Users pay nothing upfront, making it an easy decision to try the service.
Immediate benefits: Savings on recurring expenses like internet or phone bills showcase the app's tangible impact.
Stronger engagement: Real financial wins encourage users to stay engaged with the app for continued savings.
By giving users control and ensuring they pay only for real benefits, the platform aligns its revenue model with the needs and success of its users, creating a win-win dynamic that fosters loyalty and growth.
🚀 Acquisition by Rocket Companies: Enter Rocket Money
In late 2021, Rocket Companies announced the acquisition of Truebill for $1.275B.
What was the strategic rationale behind the acquisition?
Diversification of revenue
Adds consistent monthly recurring revenue to complement Rocket’s transaction-based mortgage business
Helps reduce Rocket's dependence on cyclical mortgage revenue
Armed to compete in the Fintech SuperApp wars
Part of Rocket's vision to create a centralized destination for consumers' entire financial lives
Aids transformation from a digital lender to a comprehensive fintech platform
As part of the transition, Truebill rebranded to Rocket Money. This was in line with how the company had evolved over the last few years. From managing subscription bills to becoming a full-stack financial management platform.
🔮 Future Outlook
Rocket Money continues to innovate with:
Integration of AI tools for enhanced customer experience
Focus on homeownership-related financial services
Strategic evaluation of M&A opportunities to accelerate growth
Under the leadership of CEO Varun Krishna (former executive at Intuit and PayPal), the company maintains its focus on becoming the comprehensive platform for all money management needs
Today, Rocket Money has helped over 5 million members save more than 1 billion dollars through smart money management features.
Thanks for reading! 😄
One Step Ahead is a publication by Plotline. With this series, we plan to give you a behind-the-scenes breakdown of the product and growth strategies that have propelled consumer apps to where they are today.