Social Finance, Inc. (SoFi), a San Francisco, California-based online personal finance platform, as per recent speculative reports, is believed to be closing in on a $500 million investment funding round, which allegedly is being participated by investors including the Qatar Investment Authority (QIA), Qatar’s state-owned holding company. The funding round is expected to close this week.
The, 2011 founded US fintech start-up SoFi, is valued at around $4.3 billion – same as its valuation was during the company’s 2017 funding round, which was led by Silver Lake, a Menlo Park, California-based venture capital and private equity firm, and was participated by Manhattan Venture Partners, RSC Capital, SoftBank, and DCM Ventures. But to back that valuation, investors are demanding more protections in case the San Francisco-based company raises money or sells itself for less in the future.
Initially, as a start-up lender, SoFi focused its attention on student lending service in 2011, since then the company has come a long way, branching out into a variety of lending and savings products, as well as entering into the free stock trading.
But the company landed itself in turbulent waters, when its founder and former CEO, Mike Cagney, was alleged of sexual harassment, which eventually led him to resign. Last year, at the beginning of 2018, the company laid off 5% of its employees.