Figure Technologies Secures $103 Million to Challenge SoFi in Student Loans
Mike Cagney's blockchain-based fintech startup Figure Technologies raises $103 million in a Series C round to expand its lending products. The company looks to directly compete with Cagney's former company, SoFi, by targeting younger borrowers with student debt.
Figure Technologies, a San Francisco-based fintech startup co-founded by former SoFi CEO Mike Cagney, raises an additional $103 million in Series C funding. This new capital arrives just months after the company secures a massive $1 billion asset-based financing facility, bringing its total financial backing to impressive new heights. Investors show strong confidence in the two-year-old company as it rapidly scales its blockchain-powered financial services.
The startup initially focuses on providing home loans to older, non-working customers but now actively expands into the student loan refinancing market. By targeting younger borrowers, Figure positions itself as a direct competitor to SoFi, aiming to capture a share of the $1.4 trillion in outstanding student debt. Figure leverages the same automated blockchain system it uses for home loans to process these student refinances quickly.
All of Figure's financial operations run entirely on its custom blockchain network called Provenance, which utilizes a native token named Hash to facilitate transactions. The company, co-founded by Cagney's wife June Ou along with Alana Ackerson and Cynthia Chen, also plans to launch a money market product soon. Future expansion efforts include branching out into wealth management, unsecured consumer loans, and checking accounts.