MPower Financing has raised USD 100 million in debt from the American investment bank, Goldman Sachs. MPOWER lends to high-promise international students at top US universities. The company had raised USD 100 million from Community Investment Management in 2018 December, taking its total loan financing capital to USD 200 million. It had also raised an undisclosed sum in an equity financing round led by Gray Matters Capital.
The US-based lender offers student loans to international students studying in the US or Canada without requiring a co-signer, collateral, or US credit history.
"This will be used to fund our loans portfolio... The long-term goal is to significantly increase our performance in India," Ashwini Kumar, head of India operations at MPower Financing, told Economic Times.
Kumar said, at present, India is 25% of MPower's total book. Apart from loans, the company also helps students with visa guidance and job assistance.
Mpower works with over 350 top universities and colleges across the US and Canada to provide financing to students from over 200 countries.
The backers of MPower include Zephyr Management, Goal Structured Solutions, Gray Matters Capital, Lloyd Crescendo Advisors, 1776, Village Capital, Potentia, Breega, VARIV, DreamIt, Fresco, Chilango, Common Sense Fund, K Street, and University Ventures etc.
"We are excited to work with a mix of top commercial and impact-focused investors to ensure that bright students from around the world can fulfil their educational aspirations," Manu Smadja, CEO of MPower Financing, said.
According to Crunchbase, MPower disburses payments directly to the university on behalf of the students to pay for tuition or university-sponsored services like housing, meal plans, or health insurance. Students start paying back the loan within 6 months after graduation. The loan comes with interest discounts, free personal finance education courses, credit-building, and a job placement service for the students.