MPOWER Financing secures $150M funding from Goldman Sachs

Fintech firm MPOWER Financing said it will use the funding to expand its portfolio of student loans, specifically designed for international and DACA students.

MPOWER Financing secures $150M funding from Goldman Sachs

Monday May 15, 2023,

2 min Read

MPOWER Financing, a mission-driven fintech firm that specialises in offering non-cosigned loans to ambitious students worldwide, has closed a $150 million revolving asset-backed warehouse facility through a strategic collaboration with Goldman Sachs.

"91% of our students say that an MPOWER loan is instrumental to their ability to study abroad, so this funding will enable us to further democratise access to higher education," said Manu Smadja, CEO and Co-founder of MPOWER Financing.

The company will use the funding to expand MPOWER's portfolio of student loans. These loans are specifically designed for international and DACA students attending more than 400 colleges and universities across the United States and Canada.

This financing facility with Goldman Sachs accompanies a previous facility MPOWER Financing secured with Deutsche Bank in 2022. Furthermore, in 2021, the company successfully raised $100 million in equity capital from a consortium of investors, including Tilden Park Capital Management and King Street Capital Management.

To further enhance employee morale and foster collaborative opportunities, MPOWER unveiled a state-of-the-art 22,000 sq.ft. office in Bengaluru, India, earlier this year.

Headquartered in Washington, D.C., MPOWER uses proprietary algorithms, which analyse both overseas and domestic credit data, as well as future earning potential, to extend its financing solutions to students from more than 200 countries.

Last month, Adventum Student Living (ASL), the parent company of UniScholars, UniCreds, and UniAcco, raised $5 million in a bridge equity funding round led by Cornerstone Ventures, with participation from existing investors.

According to ASL, the international student education market is estimated to be $200 billion, primarily dominated by tuition fees (~40%) and accommodation (~25%) as the largest categories. Globally, over 6-7 million students travel abroad every year for higher studies.

Edited by Megha Reddy