SoFi is at it again and reportedly nearing a deal to raise $500 million in fresh funds from an investor group led by private-equity firm Silver Lake, locking in another major investment after its $1 billion in funding led by SoftBank back in 2015, according to an article in The Wall Street Journal by Peter Rudegeair
From the WSJ:
The new equity investment, which values SoFi at more than $4 billion, would give the San Francisco-based company a fresh round of cash as it works to shake off a tough 2016 for the online lending industry it helped pioneer. SoftBank Group, the technology-investment conglomerate run by Japanese businessman Masayoshi Son, and other existing investors are also expected to participate in the current round, which could be announced in coming weeks if all details are completed as expected, the people added.
Silver Lake won't take a majority position in SoFi, according to people close to the deal. The private-equity firm has plowed money over the years into personal technology and finance, including a 2013 buyout of computer maker Dell Inc. and an earlier investment in exchange operator Nasdaq.
When the online lender announced the $1 billion in funding led by SoftBank, it marking the largest single financing round in the fintech space to date.
At the time, Mike Cagney, SoFi CEO and co-founder, said, "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.”
SoFi is now one of the largest online residential mortgage retailers, only breaking into the mortgage business roughly two years ago.