SoFi could secure Qatar investment for $500m round
Social Finance (SoFi) is believed to be in the final stages of closing a $500 million funding round from investors including the Qatar Investment Authority, reports Jane Connolly.
According to Bloomberg, four anonymous sources close to the deal have suggested that the round could close this week, but the details have not yet been finalised.
Some of the sources claim the US fintech start-up could be valued at around $4.3 billion, as it was for its 2017 funding round, which was led by Silver Lake. But the sources say that in order to achieve that valuation, investors want more protections in case the company raises money or sells itself for less in the future.
After starting life as a student lending service in 2011, SoFi has branched out into a variety of lending and savings products, as well as free stock trading.
But the company has endured challenges in the last few years, including increased competition and changes of management – particularly notable was the departure of SoFi’s CEO, Mike Cagney, following allegations of sexual harassment.
SoFi hasn’t commented on the topic.