The company will use the infused funds for expanding the company’s reach to include more students looking for educational opportunities in the US and Canada.
“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, said.
MPower Financing was founded by Manu Smadja and Mike Davis in 2014. The company works with investors and universities to lend to high-potential students. In addition to providing students with access to the financial resources necessary to attend and complete college, MPOWER builds students’ credit histories, provides them with personal finance education, and offers gateway financial products as well.
The company is said to be currently expanding its marketing team and exploring strategic partnerships. MPower Financing claims to be working with over 350 universities and colleges across the US and Canada to offer education loans to students in over 200 countries.
The Indian students, on the other hand, with the help of MPower, can avail loans without the need of guarantees, co-signers, or collateral and can make only small touch payments until graduation. Students can also pay for tuition and other services such as housing, meal plans, or health insurance from the assigned loan.
Furthermore, according to the BCG report, the digital lending industry is going to touch $1 Tn mark in the next five years.