US financial technology start-up SoFi has gotten a $1 billion (£660m) large investment from SoftBank Group, a Japanese multinational telecommunications and Internet corporation.
SoFi is calling it the largest single financing round in the fintech space to date, Reuters says in a report.
Other investors in SoFi, which refinances student loans and mortgages, included private equity firm Third Point, Wellington Management Company LLP, Institutional Venture Partners (IVP), RenRen, Baseline Ventures, DCM Ventures and others.
The funding will accelerate SoFi’s growth as the primary financial services partner for high achieving consumers disenchanted with traditional banking, the two companies said in a joint statement.
SoFi aspires to be "the most trusted financial services partner in the U.S.", SoFi CEO and co-founder Mike Cagney said in the statement.
With the new funding, SoFi will “significantly strengthen its nontraditional approach”, the company said, adding it will “broadly expand its offerings as it seeks to deepen member relationships and serve them across their lifetime financial goals”, “continue investing in its proprietary model for underwriting credit risk”, and “further simplify the user experience and deliver even more of it online, particularly through mobile devices.”
The deal is the latest in the sector, where relatively young companies offer financial services through software, reminds Reuters.
In July, Spain's Banco Santander SA (SAN.MC) agreed to provide up to around $16 million for any opportunities it identifies with British mobile banking software partner Monitise.
SoftBank is a longtime investor in tech startups, with Alibaba Group Holding and Yahoo Japan Corp among in its portfolio.