AAA SoFi soaks up $500m

SoFi soaks up $500m

US-based online financial services provider SoFi raised $500m on Friday in a series F round featuring telecommunications and internet conglomerate SoftBank.

Private equity firm Silver Lake led the round, which included asset management firm GPI Capital. The round took SoFi’s total equity funding to $1.9bn, and a Bloomberg report last week suggested the company would be valued at $4.3bn in the round.

Founded in 2011, SoFi operates an online platform that provides refinancing for student loans and mortgages, as well as personal lending, insurance and wealth management products.

The series F cash will fund an international expansion drive that will involve entering the Canadian and Australian markets. SoFi also intends to leverage its recent acquisition of online bank Zenbanx to offer mobile deposit, credit and payment options for users.

Mike Cagney, co-founder, chairman and CEO of SoFi, said: “We have 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 are 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.”

SoftBank and social media company Renren took part in SoFi’s last round, a $1bn series E in late 2015, that also featured Wellington Management Company, Institutional Venture Partners, Baseline Ventures, DCM Ventures and Third Point Ventures.

Renren, Baseline and DCM had previously combined for SoFi’s $77m series B round in 2012.

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