US lender SoFi clinches bumper $500m round to bolster balance sheet

By Oliver Smith on Thursday 30 May 2019

Alternative Lending

The Qatar Investment Authority led the round to grow recently-launched products.

US lender SoFi clinches bumper $500m round to bolster balance sheet
Image source: Anthony Noto/Flickr/TechCrunch

Just two years after its last $500m funding round in February 2017, SoFi has clinched another $500m, this time in a funding round led by the Qatar Investment Authority.

In a statement, SoFi said the round valued the company at $4.3bn pre-money (the same valuation as 2017 after its last round).

“Over the last year, we’ve worked aggressively to grow SoFi from a desktop lending business to a broad-based, mobile-first financial platform enabling members to borrow, save, spend, invest and protect their money,” said Anthony Noto, CEO of SoFi, who joined the company from Twitter in 2018.

“We’re thrilled to have [the Qatar Investment Authority] as a new investor and partner in our journey to help our members Get Their Money Right.”

Noto, along with SoFi’s existing investors, also took part in the fundraise.

The company said it will continue to use the funds to invest in growth, building on recently launched new products like SoFi Invest, an investment platform, SoFi-branded exchange-traded funds (ETFs), and SoFi Money, a digital banking arm complete with checking and savings accounts.

SoFi now has 700,000 members (borrowers) and 7.5 million registered users of its other financial services.

“We strongly believe in SoFi’s approach, and their dedication to build a transformational financial platform that is rapidly disrupting consumer finance,” said Mansoor Al-Mahmoud, CEO of the Qatar Investment Authority.

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