SoFi scoops up $500m to expand into Canada and Australia

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Lending disruptor SoFi has landed $500m in a new haul of funding led by private equity investor Silver Lake.

Softbank and GPI Capital also participated in the San Francisco firm’s Series F round.

The investments takes SoFi’s total funding to more $1.9bn with it previously picking up $1bn in a September 2015 round headed up by SoftBank.

No valuation has been disclosed but the company was valued at $4bn at the beginning of 2015.

Launching initially in the student loans space, SoFi has now expanded into areas such as mortgages, insurance, wealth management and financial wellness services targeted at employers.

It says the new capital will be used to expand its product offering further as well as enter the Canadian and Australian markets.

SoFi co-founder and chairman Mike Cagney said: “We’ve seen tremendous growth at SoFi because we know what people expect from their financial partner: they want speed, transparency, and alignment with their interests.

“We’re the only personal finance company focused not just on people’s money, but their careers and relationships as well.

“We know this opportunity doesn’t just exist in the United States, and look forward to bringing the SoFi approach to finance to more people around the world.

“Silver Lake’s global relationships, technology expertise and value creation capabilities will be an invaluable addition as we expand our business further.”

The company originated $8bn worth of loans in 2016, up from $5bn in 2015 with its user numbers more than doubling from 100,000 to 225,000 over the same period.

Silver Lake managing partner Mike Bingle said: “SoFi’s platform — equal parts technology, community, and exceptional customer experience — is rapidly transforming personal finance.

“We are thrilled to partner with Mike Cagney and his talented team, and we look forward to helping SoFi achieve its long-term vision of offering a broad suite of financial services around the world.”

The funding follows SoFi’s acquisition of mobile banking startup Zenbanx for around $100m in February.

The acquisition will be used to help SoFi launch new mobile banking, credit and payments services.

Copyright © 2017 FINTECH GLOBAL

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