Sofi Technologies (SOFI) saw its stock jump over 8% after announcing a significant deal with fortress capital.
The funds are aimed at expanding SoFi’s personal loans business, a key segment where the company refers pre-qualified borrowers to partners for loan origination and also originates loans for other firms. CEO Anthony Noto emphasized that this move would help SoFi shift towards less capital-intensive, fee-based revenue sources, improving the company's overall business model.
Fortress Capital described the investment in SoFi’s personal loans platform as a "compelling investment opportunity" for its funds, highlighting the growth potential in this segment. The stock's sharp rise comes as SoFi attempts to recover from recent market lows, and with third-quarter results expected soon, investor optimism remains high. In the second quarter, lending services generated $340 million, representing over half of SoFi's total revenue, up 3% year-over-year. Noto had previously indicated that this product line is not only profitable but also poised for continued growth, especially in a low-interest-rate environment.
The funds are aimed at expanding SoFi’s personal loans business, a key segment where the company refers pre-qualified borrowers to partners for loan origination and also originates loans for other firms. CEO Anthony Noto emphasized that this move would help SoFi shift towards less capital-intensive, fee-based revenue sources, improving the company's overall business model.
Fortress Capital described the investment in SoFi’s personal loans platform as a "compelling investment opportunity" for its funds, highlighting the growth potential in this segment. The stock's sharp rise comes as SoFi attempts to recover from recent market lows, and with third-quarter results expected soon, investor optimism remains high. In the second quarter, lending services generated $340 million, representing over half of SoFi's total revenue, up 3% year-over-year. Noto had previously indicated that this product line is not only profitable but also poised for continued growth, especially in a low-interest-rate environment.