SoFi Technologies (SOFI) has taken a major step forward in expanding its Loan Platform Business by securing an additional $3.2 billion in funding. This capital will be used to originate personal loans, bolstering SoFi’s lending capacity and diversifying its revenue toward less capital-intensive, fee-based sources.
The expansion comprises two key deals. First, SoFi extended its agreement with Fortress Investment Group, a global investment manager, adding $2 billion to the original $2 billion deal announced in October 2024. This new deal extends Fortress’ support for SoFi’s loan platform for one more year.
At the same time, SoFi signed a two-year deal with a joint venture created by Fortress and Edge Focus, a tech-focused investment firm. This venture will provide $1.2 billion to fund loan originations for SoFi.
What Does This Mean for SoFi?
The new capital supports SoFi’s plan to grow into a full financial services provider, moving beyond its initial focus on student loan refinancing.
By securing more funding, SoFi remains well-positioned to meet the rising demand from borrowers while reducing its reliance on internal resources.
This shift toward a fee-based revenue model positions SoFi for long-term growth. Also, the strong backing from key partners reflects growing confidence from investors in SoFi’s new business model.
Thus, by expanding partnerships and adopting tech-driven solutions, SoFi can meet the changing needs of borrowers and create long-term value for its stakeholders.
Is SoFi a Good Stock to Buy?
Overall, Wall Street analysts have mixed opinions on SoFi’s future. SOFI stock has a Hold consensus rating based on six Buys, six Holds, and four Sells assigned in the last three months. At $13.33, the average SoFi price target implies a 21.4% upside potential.
