Social Finance (SoFi), the US-based online lending platform backed by Asian corporates SoftBank and Renren, is in talks with investors for up to $500m in new funding, the Wall Street Journal reported yesterday.
SoFi began life in 2011 as an online platform that helped users refinance student loans, but has since expanded into personal loans and mortgage lending.
The new funding will help SoFi expand internationally and launch new services aimed at mass-market borrowers, according to a presentation reviewed by the WSJ. The round is likely to be closed in the upcoming weeks, people familiar with the matter told the paper.
SoFi has raised about $1.57bn altogether. Social media and fintech company Renren invested $150m in October 2015, weeks after it took part in a $1bn series E round that valued SoFi at $4bn.
The series E round also featured telecommunications and internet group SoftBank, investment firm Wellington Management Company and venture capital firms Institutional Venture Partners, Baseline Ventures, DCM Ventures and Third Point Ventures.
Renren has been a SoFi backer since 2012 when it invested $49m to lead a $77m series B round that included DCM and Baseline. Hedge fund manager Third Point, VC firm Wicklow Capital and Peter Thiel are also among the company’s past investors.