MPOWER raises $110 m in Series B funding

US-based MPOWER Financing, a provider of global educational loans, has raised $110 million in its Series B funding.

The fintech company, which was founded in 2014, provides educational loans to high potential international and DACA (Deferred Action for Childhood Arrivals) students. This latest round, led by Gray Matters Capital and Community Investment Management (CIM), will be used to support new product growth and technology enhancements as well as to finance student loan portfolio.

The company said in a release that the Indian market makes up the largest chunk of its customers with about a third of the whole portion. "The company plans to expand with another office in Bangalore to increase credit, operations, business development, and tech development so as to cater specifically to high potential Indian students," said Rohan Tibrawalla, Country Director, MPOWER Financing India.

When asked if the rupee's current volatility would impact loan applications or aspirants for US education, Lana Bronipolsky, Senior Vice President, MPOWER Financing, Talent Acquisition, and Operation, said, "MPOWER provides US dollar, fixed interest rate education loan for Indian students to study at more than 200 colleges and universities across the US and Canada. These loans are provided without any collateral, co-signer, or co-applicant, and can be applied within 30 minutes through an online portal."

She added that students with even half or no funding via scholarships will also be assisted with loans up to $50,000 which should be enough to cover up their entire tuition fee.

The US and Canada constitute about 55% of the Indian student populations abroad. The company is to provide loans for undergraduates, graduates, postgraduates and research applicants. "We would look for high potential students after going through their loan repayment history and their future earning ability," added Tibrawalla.