Student loans provider MPOWER Financing has raised ₹770 crores ($110 million) in a funding round from Gray Matters Capital and Community Investment Management (CIM). The Washington-based firm provides education loans to students to pursue their careers in foreign universities.
The company will use the funds to provide more loans to facilitate enrollment in major US-based universities. The freshly raised capital will also be used to support new product growth and technology improvements. The firm provides a fixed interest rate on educational loans to students, a majority of whom are Indians.
“Easy access to loan capital for Indian students will continue to be our focus. Our global citizen scholarships are open to Indian students to take advantage of our initiatives for higher education. Besides the US, we have established partnerships with Canadian Universities, which will add more options for all students,” said Lana Bronipolsky, Senior VP of the company’s talent acquisition and operations.
A student can apply for a loan online and get the cash without any collateral, co-signer or co-applicant. MPOWER helps students build their credit history for tax purposes as building a credit score is mandatory in the United States. Students can easily pay off their loans using just a mobile phone at the required time intervals.
“This infusion will enable us to sustain our efforts at empowering students in India and across the world to get easy access to loans to pursue their higher education in the US. India is an important market for the company. We will continue to enhance our product and technology offerings and innovate in the lend tech and student lending space,” said Rohan Tibrawalla, Country Director of MPOWER Financing India.
The firm has offices in New York which manages US operations and in Bengaluru which manages India operations. Through its platform, the company has already disbursed $1 billion worth of education loans to students since its inception. The firm is backed by Zephyr Management, 1776, VARIV, Fresco, K Street, University Ventures, Goal Structures Solutions, Village Capital, DreamIt and Chilango.