Social Finance Inc. is pushing back its plans for an IPO as financial technology startups see slower growth and a decline in venture funding, Bloomberg News reported.
CEO Mike Cagney reportedly told the news outlet that SoFi is delaying its IPO to concentrate on developing new business lines. Cagney said the market is not ripe for an IPO, citing the decline in public market valuations of online lenders, the news outlet reported. He said in May 2015 that the online lender would go public within the next 12 months.
SoFi's new offerings, such as wealth management and life insurance, require certain changes that could cause fluctuations in quarterly performance, Cagney said, adding that the company is not ready for investor scrutiny that publicly listed companies face every quarter.