MPOWER Financing expands lending capacity to over $300M
MPOWER Financing said it would support its portfolio of loans provided to international students studying at more than 400 colleges and universities in the US and Canada.
education loans to students, has secured debt financing, expanding its total lending capacity to over $300 million with active funding commitments from Deutsche Bank, Goldman Sachs, and Värde Partners., a fintech company offering
The US-based company said these financings would support its portfolio of loans provided to international students studying at more than 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, told YourStory.
“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 company secured 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 employs its proprietary algorithm, which evaluates international and domestic credit data, along with future earning potential, to support promising international students from over 200 countries. In the previous year, both the US and Canada achieved record levels of new international student enrollments, it said.
India represents the company’s largest 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.
Earlier this year, 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. It claims to offer 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.
Edited by Suman Singh