As TechCrunch reported earlier this week, San Francisco-based peer-to-peer lending platform SoFi (Social Finance) raised a $80 million Series C led by Discovery Capital Management with participation of Wicklow Capital, Peter Thiel and existing investors Renren, Baseline Ventures, and DCM. Peter Thiel and Duncan Niederauer, CEO of NYSE join Sofi as advisers, Discovery Capital Management’s Wije Wijegoonaratna joins the board of directors.
This round brings the total venture funding raised by SoFi to $161 million and the company has also raised $152 million in a securitized loan offering which closed in December 2013.
The new funding will be used to expand into other verticals like mortgages and personal loans and to extend SoFi’s product suite for borrowers and investors.
Since its launch in 2011, SoFi has funded $450 million in loans of over 5000 lenders, saving them $9.400 on average by refinancing their student loans.
“By bypassing the banks and directly connecting highly qualified borrowers and investors, we’ve been able to reduce their costs, improve returns and provide a much better experience than traditional financial services. The Discovery led financing allows us to aggressively build out our marketplace and significantly expand our products and services to members.
Our model is based on the tenets of being local, transparent and interactive. By creating a lending ecosystem based on affinity, we’re empowering people to invest in each other’s success.”
states Mike Cagney, CEO of SoFi in the press release.
Besides the refinancing of student loans, SoFi also provides unemployment protection, career services and an entrepreneur program which has helped dozens of borrowers start their companies with debt deferment, mentorship and capital.
NYC-based competitor CommonBond just recently expanded its offering to over 100 graduate degree programs in the US to lend against. The idea behind peer-to-peer lending platforms is that borrowers are less likely to default on loans made through a community rather than taking a loan from a faceless lender. At SoFi borrowers can expect a 5% ROI on average.
First reported by: TechCrunch
- Peer-to-Peer Lender SoFi Secures $80 Million in Series C Funding | Marketwired
- SoFi $80m fundraising paves way for growth beyond student loans | Financial Times
- SoFi Closes On $80 Million To Expand Its Lending Business | TechCrunch
- SoFi Completes Inaugural Securitization | SoFi
- HEDLINE: CommonBond expands its Student Loan Refinancing | EDUKWEST