Instant Student Loan Provider MPOWER Raises $300Mn; Focus on India, South Asia

MPOWER Financing, which offers education loans to students, has raised debt financing, expanding its total lending capability to more than $300 million.

The US-based fintech company aims to back its portfolio of loans served to global students studying in over 400 colleges and universities in the United States and Canada.

“The lending capacity exceeding $300 million includes $150 million from Goldman Sachs, and Deutsche Bank’s commitment now matches that amount,” Manu Smadja, CEO of MPOWER Financing.

“This financing is critical for us as our growth continues to be exponential. More graduate students than ever before want to come study in North America, particularly in STEM and business fields,” Smadja noted.

In May, the firm raised a $150 million revolving asset-backed warehouse facility in a strategic partnership with Goldman Sachs, adding to a prior facility it had arranged with Deutsche Bank in 2022.

MPOWER deploys its proprietary algorithm, which evaluates international and domestic credit data, along with future earning potential, to support promising international students from over 200 countries. Earlier, both the US and Canada achieved record levels of new international student enrollments, it stated.

MPOWER India Market accounts for 20% of student volume

India represents the company’s major market by student volume, accounting for about 20% of the total student volume, and it is experiencing growth, Smadja, said, adding that South Asia as a whole is an important region for the firm.

Previously, MPOWER unveiled a 22,000 sq ft office in Bengaluru—its largest global office that accommodates nearly 90% of its staff. Founded in 2014, MPOWER aims to make education more accessible by lowering financial obstacles for promising students from India and beyond.

Reportedly, the firm offers instant loan approval at competitive interest rates without the need for a co-signer or collateral, while also providing students with academic, financial, and career guidance.

In 2021, the company secured $100 million in equity capital from a group of investors, including Tilden Park Capital Management and King Street Capital Management.

MPOWER has received active funding commitments from Deutsche Bank, Goldman Sachs, and Värde Partners.

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