Social Finance, an online consumer finance platform, said Thursday that it’s going public through a reverse merger with special purpose acquisition company Social Capital Hedosophia Corp. V IPOE.
The SPAC at last check traded at $17.70, up 46%. The venture-capital investor Chamath Palihapitiya heads the SPAC.
The deal values SoFi at $8.65 billion, it said. That compares to its previous valuation of $5.7 billion as a closely held company, CNBC reports.
The San Francisco company provides a range of services, including loan refinancing, mortgages, personal loans, credit cards, insurance, investing and deposit accounts. It says it has more than 1.8 million members.
SoFi’s backers include investment titans SoftBank and Peter Thiel, according to PitchBook.
The company reported revenue of more than $200 million for the third quarter and is on track to generate an adjusted $1 billion of revenue in 2021.
That would represent year-over-year growth of 60% and full-year adjusted-Ebitda profitability, SoFi said in a statement.
“SoFi is on a mission to help people achieve financial independence to realize their ambitions,” Chief Executive Anthony Noto said in a statement.
“Our ecosystem of products, rewards and membership benefits all work together to help our members get their money right.”
Further, “with the secular acceleration in digital-first financial-services offerings, SoFi is the only company providing a comprehensive solution all in one app,” he said.
“The new investments and our partnership with Social Capital Hedosophia signify the confidence in our strategy, the momentum in our business, as well as the significant growth opportunity ahead of us.”