SoftBank Invests $500 Million in US Mortgage Startup
[Asia Economy Reporter Yujin Cho] Japan's SoftBank Group is set to invest $500 million (approximately 557 billion KRW) in the U.S. online mortgage startup Better, the Wall Street Journal (WSJ) reported on the 8th (local time).
According to sources, SoftBank has valued Better's parent company, BetterHoldCo, at $6 billion and is purchasing shares from Better's existing shareholders based on this valuation.
When discussing funding plans with investors last November, the company's valuation was $4 billion. The sharp increase in valuation within half a year is closely related to the planned initial public offering (IPO) scheduled for the end of this year. Better is preparing to enter the stock market aiming for a year-end listing.
Founded in 2014, Better provides mortgage services through partnerships with online and offline banks.
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Riding the trend of low interest rates and the preference for non-face-to-face housing transactions due to the COVID-19 pandemic, online mortgage companies have benefited, achieving $25 billion in loan performance last year and continuing strong results with $14 billion in loans in the first quarter of this year alone.
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