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SoFi raises $500m, spreads its wings

SoFi has raised $500 million in Series F financing led by Silver Lake, bringing the US online finance startup’s total equity funding to $1.9 billion. It plans to use the cash to accelerate its expansion into new product areas and countries outside of the US. Other investors included SoftBank Group and GPI Capital.

“We’ve seen tremendous growth because we know what people expect from their financial partner: they want speed, transparency, and alignment with their interests,” says Mike Cagney, SoFi Co-founder, Chairman, and CEO. “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.”

SoFi, best known as an online lender targeting HENRYs (high earners, not rich yet) with student loan refinancing and other services, originated $8 billion in loans, up from $5 billion in 2015, and expanded its member base to 225,000 from 100,000. It boosted its product offering with the introduction of a Student Loan Payoff Refi for home mortgages and student loans in partnership with Fannie Mae. It also unveiled its SoFi at Work brand for employee financial wellness, SoFi Wealth for modern investment management, and a partnership with Protective to offer term life insurance.

In 2017, it plans to take on new areas of personal finance and launch in Australia and Canada. With the recent acquisition of Zenbanx, the company plans to introduce a suite of mobile deposit, credit, and payment products to its members in the US this year.

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