Figure Technologies Inc., a financial technology company co-founded by Mike Cagney, the former CEO of Social Finance Inc. (SoFi), has laid off 90 employees, which accounts for about 20% of its workforce.
The company is reportedly preparing for an initial public offering (IPO) for its lending business, referred to as “LendCo,” in early 2024. According to documents, Figure’s lending business has been performing well, achieving a record $900 million in volume during Q2 of this year, with $83.5 million in revenue during H1 of 2023.
The lending division is said to be profitable, prompting discussions with bankers for the IPO.
Cagney expects LendCo to achieve a public valuation of $2.5 billion, which would exceed Figure’s last valuation of $3.2 billion in a 2021 funding round. The company has been achieving strong financial milestones, with $2.7 million in adjusted profit during Q2 of 2023.
Despite the positive performance, the timing of the layoffs left some employees disheartened. About half of the laid-off employees were engineers. However, remaining team members may be reassigned to new product groups in the coming weeks.
The company did not comment on its financial situation but expressed optimism about its future performance, particularly with the upcoming IPO and ambitious goals going into 2024.