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SoFi valuation remains unchanged after closing $500M funding round led by Qatar

Social Finance Inc. has closed a funding round of more than half a billion dollars, led by the Qatar Investment Authority.

The San Francisco-based online lender, better known as SoFi, was valued at $4.3 billion on a pre-money basis, about the same as its valuation after a funding round two years ago. Other investors in the more than $500 million round of equity financing include existing investors and CEO Anthony Noto.

SoFi started in 2011 with a focus on millennial student-loan refinancing, but the startup has since expanded to personal and mortgage loans, mortgage refinances and wealth management services. It has more than 700,000 members and 7.5 million users.

The fundraising follows a number of product launches from the digital lender earlier in 2019, including zero-fee exchange-traded funds, a cash account with 2.25% annual percentage yield and a cryptocurrency trading partnership with Coinbase Inc. SoFi also plans to launch a credit card in the second half of 2019.

"Over the last year, we've worked aggressively to grow SoFi from a desktop lending business to a broad-based, mobile-first financial platform," Noto said. The lender plans to use the funds to continue to invest in growth and strengthen its $2.3 billion balance sheet.

Wachtell Lipton Rosen & Katz is SoFi's legal adviser in connection with the transaction. Morgan Stanley is financial adviser, and Shearman & Sterling is legal adviser to the Qatar Investment Authority.