San Francisco, California, 29 May 2019: Qatar Investment Authority (QIA) today announces that it is leading an over $500 million 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 $4.3 billion on a pre-money basis and further strengthens SoFi's balance sheet to total capital of $2.3 billion. “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."
Mr 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% 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. 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.
Disclaimer Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. QIA and SoFi do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will QIA or SoFi or their respective affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.