Investments

SoFi Moves Closer to Expansion Plans With $500 Million Round Of Funding

SoFi, an online finance company providing student loan refinancing, mortgages, personal loans and more, announced last week it has entered into an agreement for $500 million in Series F financing, led by Silver Lake, a private technology-investing firm.

The latest round brings the company’s total funding to $1.9 billion, with other investors including SoftBank Group and GPI Capital. SoFi will use the funds to develop new product areas and expand its reach into other countries.

“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,” said 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 had a busy year in 2016, originating $8 billion in loans, an increase from the $5 billion in loans it serviced the previous year. The company also expanded its member base to 225,000 from 100,000 and hired more than 200 new employees.

To further boost its growth, SoFi has additionally acquired Zenbanx, which offers users a mobile banking account to save, send and spend money in multiple currencies in early February, a move that will allow SoFi to increase its banking offers to U.S. customers. It will also expand its services to Australia and Canada by the end of the year.

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

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