MPOWER Financing, a fintech platform and a leading provider of educational loans to international students, recently announced it has raised $100 million in equity funding.
According to a press statement by the company, the new funding is in addition to $30 million it raised earlier this year from Tilden Park Capital Management, which also participated in the current round, and ETS Strategic Capital, the venture capital arm of ETS, a non-profit educational assessment, research, and measurement organization. Other investors in the current round include King Street Capital Management, Drakes Landing Associates, and Pennington Alternative Income Management.
The Washington-headquartered fintech startup said it will use the fresh funds to directly support students, automate and scale its operations, and grow its team in Bengaluru.
Emmanuel Smadja, Founder and Chief Executive Officer of MPOWER Financing said,
“We’re delighted to be working with experienced investors who share our vision of empowering the brightest students from around the world. The new funds will be used to directly support students, automate and scale our operations, and grow our team in Bengaluru, India. We look forward to supporting an even greater number of qualified students from around the globe as they venture to study in the US and Canada.”
Founded in 2014, MPOWER Financing aims to democratize education by reducing financial barriers for high-promise students from around the world. It currently works with over 350 top universities and colleges across the US and Canada to provide education loans to students from over 200 countries.
MPOWER makes its loan decision based on the domestic and overseas credit data, as well as the student’s future earning potential, rather than his or her family’s income or assets. Its loans are approved instantly and are granted at competitive interest rates without requiring a cosigner or collateral. The startup also helps students build their credit history and provides them with personal finance education and career support to help prepare for life after school.
Chris Gamaitoni, Managing Director of Tilden Park Capital Management, commented on the funding,
“We are excited to partner with MPOWER Financing as it operates a truly differentiated business model where it not only lends to students, but also offers career guidance and supports students throughout their journey. The team’s mission and commitment to their students are inspiring. We are thrilled to support MPOWER Financing as it continues to expand its global reach and support even more students. We look forward to building on the company’s successes together.”
According to MPOWER Financing, there are more than one million international students currently studying in the US and 600,000 studying in Canada. Seeing that education funding and covering related on-campus costs are a primary concern among prospective students, the company directly addresses the problem by providing scholarships and loans to them.
MPOWER claimed to have processed more than $2 billion in loan applications on its platform since its inception in 2014.