SoftBank-backed US-based online personal finance company SoFi has acquired 8 Securities Limited, a Hong Kong-based fintech startup operating a mobile stock trading app. The deal will give SoFi an overseas footprint in the Asia market. Earlier this month, SoFi acquired US-based payment firm Galileo Financial Technologies at $1.2 billion, according to a recent press release.
The financial terms of the deal with 8 Securities are yet to be ascertained, but it will result in the firm being rebranded as SoFi Hong Kong, according to a company statement.
In a letter credited to the founders of 8 Securities, the firm said, “We will imminently be rolling out the SoFi Hong Kong app which will be an update to the 8 Securities app. We will also have a new website up for you to learn more about SoFi Hong Kong.”
Going forward, the company will bring more free financial products from the US, as well as introduce fractional shares and margin trading services. Headquartered in San Francisco, SoFi, is one of the largest online personal finance companies, providing cash management services to help members borrow, save, spend, invest, and protect their money better. SoFi claims that it has have served over 1 million global members.
It counts SoftBank as its largest shareholder. Previously in 2015, SoFi had raised a total of $1 billion in a Series E round of financing led by SoftBank.
According to the letter, Forbes recently ranked SoFi as one of the top 5 largest fintech companies in America with a valuation of US$4.4 billion. Back in 2019, Qatar Investment Authority had infused a total of $500 million in SoFi.
“We underwent an extensive process in considering our initial expansion into an international market, and it quickly became clear that Hong Kong, a financial capital of Asia, is ripe for innovation,” said Anthony Noto, the CEO of SoFi in a statement.
8 Securities, founded by Mathias Helleu and Mikaal Abdulla, pitched an investment platform to younger investors. It offered mobile-only investing, a robo-advisor, a social trading platform, and free commission trading service.
Its website reveals that it has tens of thousands of customers in over 50 countries, with the majority in Singapore, Hong Kong, and mainland China. It has garnered over $60 million in funding, including $25 million of financing from Japanese investment bank Nomura in 2018.