Venture Capital News: MPOWER Pulls In $110M
NEW YORK, NY, MPOWER Financing, a student loan provider to promising international students, has raised $110 million in funding.
MPOWER Financing, an innovative fintech company and provider of educational loans to high-potential international and DACA students, has completed its largest funding round to-date with $110 million in new financing for students enrolling in major U.S. universities.
This latest round, led by Gray Matters Capital and Community Investment Management (CIM), will be used to support new product growth and technology enhancements as well as to finance MPOWER Financing's expanding student loan portfolio.
"We co-created a unique type of debt with Community Investment Management's leadership team. This $100M is just the beginning of MPOWER's Capital Markets roadmap," said Mike Davis, MPOWER Financing Chief Investment Officer and co-founder.
"The raise is a testimony to the importance of financial access to global education and the central role that international students play in U.S. and Canadian universities," said Manu Smadja, MPOWER Financing CEO and co-founder. "The round brought together a diverse mix of domestic, international, traditional and impact-focused investors such as Breega Capital, Potencia Ventures, and University Ventures. All existing MPOWER Financing investors with an active fund re-upped their commitment including Village Capital, 1776, VARIV, Fresco Capital, Zephyr Management, K Street and Goal Structured Solutions."
"We have enormous respect for the work that MPOWER Financing is doing to revolutionize student lending - globally," said Erika Norwood, executive director of Gray Matters Capital. "The world is full of obvious things and for us investing in MPOWER Financing was a no-brainer. Many lenders talk about leveling the playing field so that quality education is accessible but they are actually doing it. We're honored to be a part of their impact and excited to see what's next on their horizon."
"As the first impact investment firm focused on marketplace lending, we look for lenders with alternative lending methodologies which serve creditworthy borrowers with responsible and transparent loan terms," said Jacob Haar, managing partner and head of investments and operations for CIM.
About MPOWER Financing
MPOWER Financing, headquartered in Washington, D.C., and with offices in New York City and Bangalore, India, is a mission-driven fintech company and provider of global educational loans. It is the only student lender in the world that leverages both overseas and U.S. credit data, as well as future earning potential, to serve high-promise international and DACA students. MPOWER Financing works with more than 200 top universities and colleges across the nation to provide financing to students from over 200 countries. Since 2014, it has received close to $1B in loan application volume on its platform. MPOWER Financing helps students build their credit histories and provides them with personal finance education and career support to help prepare for life after college. The team is backed by Zephyr Management, Goal Structured Solutions, 1776, Village Capital, VARIV, DreamIt, Fresco, Chilango, K Street and University Ventures. Funds are managed by Lloyd Crescendo Advisors.
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