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SoFi confirms $500 million in new funding as it pushes beyond lending

SoFi confirms $500 million in new funding as it pushes beyond lending
From TechCrunch - February 24, 2017

Online financestartup SoFigot its start refinancing student loans but gradually has been adding other services to members.To expand into new regions and move closer to becoming a full-service financial services company, SoFihas confirmedthat it raised an additional $500 million in equity financing led by Silver Lake.

The new funding round, which previously had been reported by Bloomberg and the Wall Street Journal, brings total equity financing to $1.9 billion. Other investors in the round include SoftBank and GPI Capital.

SoFi is best known as an online lender targeting so-called HENRYs (high earners, not rich yet) with student loan refinancing and other financial services. Rather than look strictly at FICO scores as a measure of credit-worthiness, SoFi also takes into account factors like income and cash flows as it evaluates potential members.

Starting with student loan refinancing, SoFi quickly added personal loans and mortgage lending options for its members. But each of those products is limited by the lack of frequency with which usersneed them, which ledSoFi to begin offering a wider suite of financial services.

Nowadays SoFi members can buy life insurance and use wealth management tools the company has added, and soon they willbe able to getmore traditional banking services from the company.SoFi acquired banking startup Zenbanxin a deal valued at around $100 million to round out its portfolio withbanking, debit, payments and money transfer services.

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