SoFi (Social Finance), a student loan refinance provider, announced a $1 billion Series E led by SoftBank with participation from existing investors Third Point Ventures and affiliates of Third Point LLC, Wellington Management Company LLP, Institutional Venture Partners (IVP), RenRen, Baseline Ventures, DCM Ventures and others.
Founded in 2011, SoFi now has raised over $1.42 billion to date and will most likely delay a planned IPO. The company has recently expanded into other verticals including mortgage refinancing and personal loans. To date SoFi has issued over $4 billion in loans.
Leading Marketplace Lender SoFi Secures $1 billion in Series E Funding led by SoftBank
Largest single round of financing in the fintech space to date will fuel SoFi’s expansion as the primary financial services partner for high achieving professionals
SAN FRANCISCO and TOKYO, Sept. 30, 2015 /PRNewswire/ — SoFi, one of the nation’s leading marketplace lenders, and the SoftBank Group (“SoftBank”), today announce $1 billion in Series E funding led by SoftBank – marking the largest single financing round in the fintech space to date. Existing investors participating in the round include Third Point Ventures and affiliates of Third Point LLC, Wellington Management Company LLP, Institutional Venture Partners (IVP), RenRen, Baseline Ventures, DCM Ventures and others. The funding will accelerate SoFi’s growth as the primary financial services partner for high achieving consumers disenchanted with traditional banking.
The Series E round brings total equity investment in SoFi to $1.42 billion. The firm has been profitable since 2014. This capital raise, closely following its Series D round in February, 2015, is a testament to the company’s rapid growth and category leadership.
“SoFi continues to redefine consumer expectations in financial services,” said Mike Cagney, SoFi CEO and co-founder. “This funding will dramatically advance expansion of our disruptive products and experiences, and in turn, meaningfully benefit financially responsible individuals. Our trajectory is clear: we are well on our way to becoming the most trusted financial services partner in the U.S.,” he continued.
SoFi began challenging the status quo in 2011, as the first company to enable graduates to consolidate and refinance their federal and private student loans. Since that time, the company has expanded its offerings to include mortgages, mortgage refinancing, and personal loans, while earning industry-leading customer loyalty. The firm has funded more than $4 billion in loans to date and is expected to surpass $6 billion in funded loans by the end of 2015.
“SoftBank seeks to invest in large industries or geographies that are ripe for change,” said Nikesh Arora, President & COO of SoftBank Group Corp. “This investment gives SoftBank exposure to the financial services sector, which is one of the largest and most important industries in the world. SoFi is clearly a game changer in the fintech space,” he added.
The Series E funding will fuel SoFi’s growth in product innovation, delivery, community value and team.
Growth of Product Innovation and Delivery
With the new funding, SoFi will significantly strengthen its nontraditional approach, best-in-class customer service and product innovation. In the coming months the firm will:
- Broadly expand its offerings as it seeks to deepen member relationships and serve them across their lifetime financial goals.
- Continue investing in its proprietary model for underwriting credit risk.
- Further simplify the user experience and deliver even more of it online, particularly through mobile devices.
SoFi is committed to providing tangible value to its community that can’t be found elsewhere. As a result of the funding, the company will:
- Expand its member services, which continue to be differentiated among financial services providers, including its Entrepreneur Program and Career Services team.
- Invest in other member services, from its rigorous job boot camp to an exclusive job board for the SoFi community.
Headquartered in San Francisco, the company currently has more than 400 full-time employees and expects to add at least 100 more by year-end. To house its burgeoning sales, servicing and underwriting teams, SoFi is:
- Doubling its office space in Healdsburg, California to 20,000 sq feet.
- Growing its 50-strong engineering office in Helena, Montana, along with its offices in Washington, DC and Frisco, Texas.
SoFi is a leader in marketplace lending and the largest provider of student loan refinancing, with over $4 billion dollars in loans issued. We’re transforming financial services for high achieving professionals with student loan refinancing, mortgages, mortgage refinancing, and personal loans. Unlike traditional lenders, our proprietary underwriting approach takes into account merit and employment history to offer unique credit products our members won’t find elsewhere. We offer individual and institutional investors the ability to create positive social impact in the communities they care about while earning compelling rates of return. For more information, visit sofi.com.
About the SoftBank Group
The SoftBank Group is a global technology player that aspires to drive the Information Revolution by supporting disruptive entrepreneurs. The SoftBank Group is comprised of the holding company SoftBank Group Corp. (TOKYO:9984) and its global portfolio of companies, which includes advanced telecommunications, media and Internet services and clean energy technology providers. To learn more, please visit SoftBank.com.