SoFi, a mobile-first personal finance company, announced today it has closed over $500 million in equity financing led by Qatar Investment Authority (QIA), which values the company at $4.3 billion on a pre-money basis.
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 further strengthens SoFi’s balance sheet to total capital of $2.3 billion. The other investors in the company’s fundraise include existing investors as well as CEO Anthony Noto.
“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 Mr. 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.”
This announcement follows several key product releases from SoFi since the start of 2019, including 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% 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 its home loans experience earlier this year. The company recently announced that they have over 700,000 members and 7.5 million registered users.
Wachtell, Lipton, Rosen & Katz is serving as SoFi’s legal advisor in connection with the transaction. Morgan Stanley is serving as financial advisor and Shearman & Sterling is serving as legal advisor to QIA.
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