SoFi is seeking $500 million funding round to provide new services to customers and expand overseas.
It has been reported that online lending giant SoFi is seeking $500 million in a new funding round to fuel its expansion plans. The financing round is likely to include a number of Asian investors such as SoftBank, DCM Ventures and Third Point and will be led by private equity firm Silver Lake Partners according to Bloomberg.
Social Finance, more commonly known as SoFi is an online personal finance company that provides student loan refinancing, mortgages and personal loans. The company launched in 2011 with a focus on student debt consolidation and refinancing but has since expanded its offerings to include a range of products from mortgages and personal loans to life insurance.
In a Bloomberg interview at the end of 2016, SoFi CEO, Chairman & Co-Founder Mike Cagney said that 2017 would see the company look to bring a deposit account and credit card to market. In line with that goal, SoFi recently announced that it had acquired Zenbanx, a fintech firm providing multi-currency mobile banking services. The acquisition will help provide its customers with expanded personal finance offerings such as checking accounts, credit cards and international money transfers.
SoFi has become one of the leading fintech companies in North America attracting over a 1.4 billion dollars in funding and issuing billions in loans. The company plans to expand internationally in 2017, first to Australia and then to the UK and eventually Asia. The company currently has more than 230,000 customers and over 800 employees across the US. Dan Macklin, VP of Community and Member Success explained to Forbes that the company grows faster than its rivals by creating products and services that appeal to a highly engaged group of people and offering lower rates than most of their competitors.