The new funds will be deployed to automate operations, scale the team and facilitate loan offers for the increased number of students wishing to study in North America.
MPOWER Funding provides student loans to highly promising students from India and other countries
Other Indian companies in the sector include Eduvanz and Leap Finance
Fintech venture and global education loan provider MPOWER Funding announced today that it has raised a $100 million capital investment.
The new funding is in addition to the $30 million MPOWER raised earlier this year from Tilden Park Capital Management, which also participated in the current round, and ETS Strategic Capital on behalf of ETS. Other investors in the current round include King Street Capital Management, Drakes Landing Associates and Pennington Alternative Income Management.
The funding will be deployed to facilitate loan offers for the increased number of students wishing to study in North America.
Founded in 2014 by Emmanuel (Manu) Smadja, MPOWER Financement offers student loans to promising students from India and other countries. MPOWER also provides students with academic, financial and career counseling services.
“We are thrilled to work with experienced investors who share our vision of empowering the brightest students around the world,” said Smadja, Managing Director of MPOWER Financing. “The new funds will be used to directly support students, automate and scale our operations, and grow our team in Bengaluru. We look forward to supporting even more qualified students around the world as they study in the United States and Canada,”
The Washington DC-based company claims to work with over 350 top universities in the United States and Canada to provide funding for students from over 200 countries. MPOWER counts Bengaluru and New York-based Zephyr Peacock, who helped establish MPOWER’s office in Bengaluru and expand its presence in India, as one of its earliest investors. The team is also backed by Breega, Potencia Ventures, Goal Solutions, Gray Matters Capital, Cometa, AI8, DreamIt, 1776, Village Capital, Fresco, K Street and University Ventures.
Currently, the market has only a few participants in the student loan industry. For example, Mumbai-based education-focused fintech startup Eduvanz recently raised $10 million in debt funding from several financial institutions, including InCred Financial Services, Vivriti Capital and Northern Arc Capital. In November 2020, Eduvanz even acquired edtech startup Klarityan online networking and mentoring platform.
Other startups in the sector include Bengaluru-based Leap Finance, which focuses solely on overseas higher education. Leap Finance is backed by Sequoia Capital.