Consumer financial services startup SoFi The special-purpose acquisition company, Social Capital is closing in on a contract to go public through a merger with Hedosopia Holdings Corp V, the latest vacant Czech company formed by venture capital investor Chamath Palihipitiya.
An agreement to make Sophie public through SPAC has been rumored for weeks. This latest advancement, which reveals Paliapitia as a possible SPAC connection, was previously reported by Reuters. The deal would reportedly give SoFi a valuation of more than $ 6 billion.
SoFi, now led by ex-Twitter COO Anthony Noto, was founded more than a decade ago to offer ways to secure better financial terms for student loans. The company has expanded those offerings to consumers such as debt, investment and insurance products, as well as cash and money management tools. It entered the B2B realm with the acquisition of Galileo last April.
Sophie has raised millions of rupees in the capital since its inception, the biggest round of $ 500 million in 2019, led by the Qatar Investment Authority, Doha, Qatar-based private equity and sovereign wealth fund. The company was recently valued at $ 4.3 billion.
Palpeethia has been credited for stopping the SPAC craze. SPACs, also known as blank-check companies, are formed for the purpose of merging or acquiring other companies. The shell company raises money in an initial public offering intended to merge into a private public company that then becomes publicly traded. There has been a shortage of SPAC in the last 18 months,
In 2017, he raised $ 600 million for his first SPAC, called social capital Hedosopia Holdings, which was eventually used to take a 49% stake in British spaceflight company Virgin Galactic. Social Capital Hadosophia Holdings Corp v. Palihapitia has its third SPAC. In 2020, they had a second merger with Opendoor.