[Funding Alert] Student loan provider Prodigy Finance raises a total of $750M from CPP Investments
UK-based fintech platform, which provides postgraduate student loans to international students, on Wednesday said it secured $500 million from CPP Investments.
Recently, it had raised $250 million from the US International Development Finance Corporation, taking the total capital raised to $750 million.
According to an official statement, the startup will use the funds to grant loans to post-graduate students, with a major focus on students from low-income and lower-middle-income countries and women.
Founded in 2007, Prodigy Finance aims to make university education available for every deserving student regardless of their socio-economic background. In India, it claims to offer education loans to Indian students without the need for security, a co-signer, or guarantor at more than 800 schools around the world in the fields of Marketing and Business Administration, Engineering, Law, Public Policy, and Health Sciences.
“We are pleased to have secured this substantial infusion of funds. We are confident that this funding will prove instrumental in transforming the future of numerous deserving students across the Indian-subcontinent who otherwise would never have been able to follow their dreams of studying in a top foreign university,” Mayank Sharma, Country Head for Prodigy Finance India, said in a statement.
The company claims to provide a unique global credit model, which assesses applicants on numerous variables. The entire loan application process takes place online, and students sign their final loan agreement once they have reached campus.
It claims to have financed over $1 billion in graduate education loans to over 20,000 high-potential students from over 100 countries in the fields of marketing, finance, and human resources, among others. It also claims to have recorded 50 percent year-on-year in applications.
“This financial commitment to Prodigy Finance is a great example of our ability to provide flexible funding solutions to complex business needs and fits well with CPP Investments’ credit strategy of investing our patient capital with leading partner organisations,” Derek Jackson, Managing Director, Head of European Credit, CPP Investments, said in a statement.
Prodigy Finance recently partnered with 12 new colleges in the United States, taking the total count to 800 colleges and universities hosting 1000 post-graduate courses in its curriculum.
“Achieving this important funding milestone is another step towards achieving our goal of helping over 25,000 students every year,” Neha Sethi, Head of Capital Markets, Prodigy Finance.