By
Godfrey Benjamin
April 12th, 2024
SoFi founder Mike Cagney’s Figure Technologies is reportedly aiming to raise an additional sum of $100 million through a Series C funding.
Mike Cagney, famous for being the founder and CEO (since 2017 ex-CEO) of SoFi fintech company, is reportedly aiming to raise funds money via another firm. Cagney co-founded a two-year-old San Francisco-based fintech firm known as Figure Technologies.
By February 2019, Figure had already managed to raise $120 million in equity funding. The amount was brought to the project by a group of prominent investors including partners at DST Global, RPM Ventures, Morgan Creek, Ribbit Capital, Nimble Ventures, DCG, and DCM. In May this year, the company announced that it had already closed an up to $1 billion uncommitted asset-based financing facility.
Today, according to the information contained in the paperwork filed with the SEC earlier this month, it seems that Figure has already finalized or is still in the process of closing $103 million in Series C funding.
Most probably, investors are interested somewhat in the company’s expanding offerings. Although the firm started its journey by offering home loans to older customers, it has most recently started diversifying.
But, it has now started chasing after the demographic that Cagney knows quite well through his dealings in SoFi. Thus, Figure is targeting the younger people aiming to refinance their student loans.
Reason for Its Entrance
Figure allegedly talked recently with American Banker about its interest in competing a bit more directly with SoFi. It cited the $1.4 trillion in outstanding loan debt as the main reason for its coming into the space.
Particularly, all the entire financial services business operated by Figure is executed wholly on its blockchain known as Provenance. The blockchain further has a native token, Hash that is used to both access the blockchain and to memorialize off-chain exchanges of fiat currency.
Cagney is the co-founder of Figure together with June Ou, his wife. Alana Ackerson and Cynthia Chen are the other co-founders of Figure Technologies. Ackerson was formerly the Chief Executive Officer of the Thiel Foundation. On the other hand, Chen was recently a venture partner with DHVC (Danhua Capital). Danhua is a venture capital firm operating from Palo Alto, California.
Plans for the Future
The company is going to launch a money market product. It is expected to happen in the near future. The company has also wants to expand into other lines of business, including such aspects as unsecured consumer loans, wealth management, and checking accounts. These services are partner banks.
These days, SoFi is also working on the expansion of its services and is trying to go beyond student loan refinancing under the stewardship of current CEO Anthony Noto. Earlier in the year, for instance, SoFi made partial share buying and exchange-traded funds available to its users. Moreover, it also launched a mobile-first cash management account.