Qatar Investment Authority (QIA) yesterday announced that it is leading an over $500m equity financing in SoFi, a mobile-first personal finance company, alongside existing investors and SoFi CEO, Anthony Noto.
SoFi plans to use the funds to continue to invest in its rapid rate of innovation and growth, fulfilling its mission to help SoFi members achieve financial independence to realize their ambitions. The investment round values SoFi at $4.3bn on a pre-money basis and further strengthens SoFi’s balance sheet to total capital of $2.3bn.
“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. “We’re thrilled to have QIA as a new investor and partner in our journey to help our members Get Their Money Right.”
“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 QIA. “SoFi’s team have a clear long-term vision for their business, and we’re proud to be their partners and to support them on their journey as part of our broader strategic investments in technology.”
Al Mahmoud further added: “Today’s announcement underlines QIA’s growing focus investing in leading innovators in the TMT sector. QIA has ambitions to build strong partnerships with Technology companies in the US and beyond.”
This announcement follows several key product releases from SoFi since the start of 2019. This includes SoFi Invest, an investment platform inclusive of active investing in stocks and ETFs (brokerage). SoFi-branded ETFs, and automated investing.
As well as SoFi Money, the features of a checking and savings account in one new account with 2.25 percent APY, no fees, and the ability to spend, save, and pay all from the SoFi mobile app. SoFi also entered the undergraduate loan business with their Private Student Loans and relaunched their home loans experience earlier this year. The company recently announced that they have over 700,000 members and 7.5 million registered users.
The transaction is subject to customary closing conditions.
Source from: The Peninsula