Fintech unicorn SoFi said to report Q2 loss of $200 million
SoFi CEO Anthony Noto image credit : Flickr/TechCrunch As per a new report from Bloomberg, Personal finance startup and unicorn…
|SoFi CEO Anthony Noto
image credit : Flickr/TechCrunch
As per a new report from Bloomberg, Personal finance startup and unicorn SoFi is said to have reported second quarter losses of $200 million with writedowns of under-performing playing a major part in the losses citing people familiar with the matter.
The $4.5 Billion fintech startup led by former Twitter CFO Anthony Noto initially began in 2011 as a student loan refinancer before stepping up to become a wider online financial services company getting into mortgages, personal loans, wealth management, digital banking and other financial services.
The reported $200 million figure comes before interest, taxes, depreciation and amortization with SoFi not commenting on this report.
With about $2 Billion in both equity and debt financing raised in total, SoFi (standing for Social Finance) has expanded its financial services with aims of cementing a status as a major digital financial services firm having reported $3.6 Billion in funded loans so far while expecting to be again profitable at the end of this year as stated by a source.
SoFi was notably in the media over reports of sexual harassment allegations against its co-founder and former CEO Mike Cagney which led to him stepping down with Anthony Noto who has held positions at Goldman Sachs and Twitter where he spent a short time at before heading on to SoFi as CEO early this year.
“Our Q2 financial results were negatively impacted by significantly lowered valuation of legacy loans and assets as well as the slow start to increasing prices in the face of a rising interest rate environment,” the company said in a second-quarter shareholder letter, dated Aug. 3, as obtained and reported by Bloomberg.
SoFi has lost several executives in recent times while also hiring others from the likes of Expedia, Amazon, Uber, Citigroup and Goldman Sachs.
A report from PitchBook October last year stated of SoFi getting an acquisition offer of $6 Billion from a foreign bank which fell through after the fintech company sought a valuation between $8 Billion – $10 Billion for an offer.