SoFi nears deal to go public in merger with Chamath Palihapitiya’s newest SPAC – TechCrunch

Consumer financial services startup Sophie 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 Palahipatiya as a possible SPAC connection, was First reported by Reuters. The deal would reportedly give SoFi a valuation of more than $ 6 billion.

SoFi, now headed by former Twitter COO Anthony Noto, Founded more than a decade ago to offer ways to secure better financial terms for student loans. The company also offered loans, investment and insurance products as well as cash and Money management tool. It ventured into the B2B realm acquisition of Galileo’s 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.