Peer-to-Peer Lending Platform SoFi Bags $80M Series C
April 04, 2014
Social Finance (SoFi), the provider of a peer-to-peer student loan platform, has raised $80 million in Series C funding led by Discovery Capital Management, with participation from Wicklow Capital, Peter Thiel and other existing investors. Bypassing traditional banks, the company directly connects highly qualified alumni borrowers and investors, aiming to reduce costs and improve returns. Since its launch in 2011, SoFi has funded $450 million in loans to over 5,000 members, with borrowers averaging over $9,400 in savings by refinancing their student loans. SoFi also sets itself apart from other lenders by offering unemployment protection, career services and an entrepreneur program.
The company previously raised $79.6 million of Series B funding at a $180 million valuation in 2012. The new capital will be used to expand the footprint of SoFi's existing student loan refinancing and extend its product suite for borrowers and investors. In conjunction with the financing, Discovery’s S.P. Wijegoonaratna is joining the company’s Board of Directors.