Social Finance (SoFi), a US-based alternative loans company backed by social networking platform Renren, raised $200m yesterday in a series D round led by investment advisor Third Point.
Investment management firm Wellington Management Company and private equity firm Institutional Venture Partners also participated in the round, as did undisclosed existing investors.
SoFi secured $80m in April 2014 from a series C round backed by Renren, Discovery Capital Management, Peter Thiel, Wicklow Capital and Baseline Ventures. Renren also took part in the company’s $77.2m series B round in 2012, together with Baseline and DCM.
Founded in 2011, SoFi operates a marketplace lending business that offers mortgages and personal loans, but which specialises in refinancing student loans. It has now issued $1.75bn in credit to its customers.
In total, SoFi has now raised about $780m in total debt and equity since it was formed in 2011. The latest equity funding will be used to expand its consumer lending business throughout the US, while also adding new investment options to its product.
Mike Cagney, SoFi’s chief executive, said: “Member response to the SoFi experience – our non-traditional underwriting approach, product innovation, and seamless customer service – has proven that we’re becoming the pre-eminent financial services provider for early career professionals.
“This financing allows us to continue to expand our unique offerings to them while delivering access to premium credit for our marketplace investors.”