SoFi, an US financial technology startup has raised $1 billion in Series E round of funding led by Japanese telecom and internet giant SoftBank Group Corp along with Third Point Ventures, Wellington Management Company LLP, Institutional Venture Partners, RenRen, Baseline Ventures and DCM Ventures.
Leader in marketplace lending and the largest provider of student loan refinancing, the startup SoFi has issued more than $4 billion dollars in loan since its start. They transform financial services for high achieving professionals with student loan refinancing, mortgages, mortgage refinancing and personal loans. Unlike the traditional lender, their proprietary underwriting approach takes into account merit and employment history to offer unique credit products our members won’t find elsewhere. The company offers individual and institutional investors the ability to create positive social impact in the communities they care about while earning compelling rates of return.
“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.
This deal is considered to be one of the biggest deals in the financial technology sector and takes te total equity investment in the leanding marketplace SoFi to $1.42 billion. The deal comes at the time where the segment has attracted many private equity and venture capital investors in India as well. This deal is expected to boost SoFi’s growth as a financial services partner for consumers disenchanted with traditional banking. SoFi aspires to be “the most trusted financial services partner in the U.S.,” said Cagney in the statement.