US online lender SoFi raises $500m to expand in Australia

Further participation in the round came from Japan’s SoftBank Group as well as London and New York-based investor GPI Capital. It brings the company’s total equity funding to $1.9 billion. In addition to an Australian expansion, the capital is expected to support new operations in Canada as well as plans to introduce new mobile deposit, credit and payment products.   

“SoFi’s platform — equal parts technology, community, and exceptional customer experience — is rapidly transforming personal finance,” Mike Bingle, managing partner at Silver Lake said in a statement. “We look forward to helping SoFi achieve its long-term vision of offering a broad suite of financial services around the world.”

Founded in 2011, SoFi provides student loan refinancing, mortgages and personal loans. The company claims to have increased its annual loan volume 60% during 2016 to $8 billion while more than doubling its member base to 225,000. Recent activity includes the acquisition of US mobile banking start-up Zenbanx for about $100 million as well as the rollout of products focused on employee financial wellness and life insurance.

The investment follows a $1 billion Series E round led by SoftBank in 2015, which was said to be the largest-ever commitment in the financial technology space. Previous backers also include Singapore’s Temasek Holdings, DCM China and Chinese social networking site Renren as well as US-based GPs Third Point Ventures, Wellington Management Company, Institutional Venture Partners and Baseline Ventures.

PE activity in Australian fintech is relatively nascent. Capital investment is estimated to have peaked at $175 million in 2015 before falling to $71 million last year.

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• Topics
• Australasia
• North America
• Financials
• Technology
• Expansion
• Australia
• USA
• Financial Services
• Growth capital
• TMT
• Softbank