After months of speculation, Social Finance Inc. — or SoFi — is finally going public via a reverse merger with Social Capital Hedosophia V.
It’s the day that many investors have been waiting for as or SoFi (NASDAQ: SOFI) finally completes its reverse merger with Chamath Palihapitiya’s Social Capital Hedosophia V.
But what is SoFi?
The future of finance?
We’ve heard that one before, but what separates SoFi from Stripe, Square, PayPal, and the numerous other ‘big bank killers’?
SoFi has spent the past decade setting itself up as a company that provides comprehensive digital banking services in the era of Millennials and Gen Zs. SoFi has created a helpful tool to encourage understanding about finances so people can learn to safely handle their money. With financial services including loans, banking, and investments, SoFi is a one-stop-shop for everything modern money-handlers might need.
But while this may sound an awful lot like those other competitors, does that really matter? The global digital banking market is anticipated to reach a value of $1.6 trillion by 2027, growing at a CAGR of 8.9%. There’s enough cheddar to go around.
So what do investors need to know today? Well, after raising roughly $2.4 billion in cash proceeds from its merger with the Chamath SPAC on Friday, SoFi is likely to start trading on the Nasdaq today. Having traded under the ticker symbol ‘IPOE’, from today, that will change to ‘SOFI’.
For more information on what a SPAC/reverse merger is, you can read our blog.
For anyone that already held shares in IPOE, this changes nothing but the name, while prospective investors might want to be aware of the change.
As for SoFi’s prospects as an investment, you can find out more about its financials and growth potential on the MyWallSt blog for free here.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.