Figure Technologies, a fintech startup founded by Mike Cagney – the founder of SoFi nearly two years back, is observing a hike in its fundings.
This San Francisco-based fintech raised funding of $120M in equity funding back in February this year. The one in which various reputed investors, including Ribbit Capital, RPM Ventures, Nimble Ventures, DCM, Morgan Creek, and DCG. In May, they unveiled that they have crossed up to $1B of uncommitted asset-powered financing facility on its own custom Blockchain from WSFS Institutional Services and Jefferies.
And now, according to the paperwork filed with the SEC earlier this month, Figure Technologies is about to touch $103M in Series C funding. A probable reason behind which is their investor’s partly interest in the startup’s growing series of products.
While Figure started as a perfect collaboration of Blockchain and Fintech that provides home loans to the older customers who are not working/earning income in the present days, but have much of their wealth tied to their homes, they have now expanded their demographic. They have begun focusing both on their previous user demographic and that of SoFi: young people looking to refinance their student loans.
They have also recently talked to American Banker about their interest in competing directly with SoFi, quoting the $1.4 trillion in exceptional loan debit as the core reason behind its growing popularity. And, with the same ‘mousetrap’ strategy that Figure has designed to quickly and effectively process home loans, which it further securitizes and sells.
To be more specific, most of the financial services business of Figure, if not all, is conducted entirely on its own blockchain, Provenance. This blockchain has also come up with a token called Hash which is employed for both accessing the blockchain and memorialize all the off-chain exchange of fiat currency. Something that has also directed other fintech Entrepreneurs to connect with Blockchain app development companies and amp up their business by introducing the power of decentralization into their processes.
Now while this is all about the present, the Figure team is planning to grab more such opportunities and enjoy higher fundings in the time to come. The brand has shared that they are planning to bring a money market product soon into existence, alongside various other lines of business like wealth management, checking accounts, and unsecured consumer loans.
And when talking about SoFi, the fintech startup is also working on a similar business model. They, earlier this year, introduced the opportunity of fractional share buying and exchange-traded funds and launched a mobile-powered cash management system. And now, are planning to go beyond refinancing student loan.