Mpower Financing raised $25 million
Mpower Financing, an educational loan company for international students, has raised $25 million from Tilden Park Capital Management, a US-based investment management firm.
With this, the company has so far raised a total of $55 million in equity funding, including $9 million earned from a clutch of investors including Breega, Potencia Ventures, AI8, Cometa, Zephyr-Peacock, 1776, Fresco Capital, 1994 LLC, and Target Organized Solutions in June 2020.
“The strong credit quality and social mission of Mpower Financing attracted Tilden Park,” said Manu Smadja, Mpower Financing’s co-founder and chief executive officer. “We will benefit substantially from their capital markets and credit expertise, as well as their global investment experience.”
The company plans to use the funds raised to invest in technology and further automate its digital loan platform, as well as in Bengaluru and Washington, DC, to market and grow its team. Ashwini Kumar, general manager of Mpower India, told ETtech that the company plans to employ 55-60 people across verticals.
However, the organization makes its loan decisions based on domestic and overseas credit results, rather than the income or assets of its family, as well as the future earning potential of the student. It also helps students develop their credit records and provides them with job support and personal-finance education. Mpower said it has earned more than $2 billion in loan application volume on its platform since its inception.