It's official, another fintech company joins the unicorn club. With its most recent $200m raise, SoFi is valued around $1.3b. SoFi provides graduates of top universities with student loan refinancing, targeting the trillion dollar student debt crisis.
The San Francisco-based company was co-founded by CEO Michael Cagney in 2011 and has become a leading provider of student loan refinancing, primarily servicing graduates of top universities. SoFi will use the new funds to fuel the expansion of its consumer lending products throughout the U.S. and build out its marketplace with new options for investors. "Member response to the SoFi experience – our nontraditional underwriting approach, product innovation, and seamless customer service – has proven that we're becoming the preeminent financial services provider for early career professionals," said Cagney in a press statement. "This financing allows us to continue to expand our unique offerings to them while delivering access to premium credit for our marketplace investors." P2P lending is quickly heading mainstream and has become a fast-growing sector.