SoFi Looks For $500M To Expand Lending Services

Social Finance, or SoFi for short, is nearing an agreement to raise as much as $500 million in a new venture capital funding round, Bloomberg reported. That tally is likely to be led by Silver Lake Partners, the newswire said, and will be geared toward boosting the online lending and personal finance offerings now under SoFi’s umbrella.

Bloomberg noted that the firm traces its genesis to 2011, with an initial push into student loan refinancing. The financial platform has expanded to embrace products as disparate as lending across personal, individual lines, mortgages and insurance. The recent Zenbanx buy for about $100 million last year means that SoFi is also moving into credit cards and checking accounts.

The latest funding round, likely to come soon and perhaps as early this week, would value SoFi at $4.3 billion, which is a marked boost over the previous $3.2 billion, said Bloomberg.

Among the investors will be SoftBank Group, Third Point and DCM Ventures, to name a few. Deals between the entities will buy up SoFi loans (the firm issued $5 billion in loans in 2015 to a cumulative $15.5 billion this year) and take equity stakes.

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