“The new funds will be used to directly support students, automate and scale our operations, and to grow our team,” said chief executive officer, Manu Smadja.
“We look forward to supporting an even greater number of qualified students around the globe as they study in the US and Canada.”
He added that the company is “delighted to be working with experienced investors who share our vision of empowering the brightest students from around the world”.
Tilden Park Capital Management also contributed to $30m funding that MPOWER raised earlier in 2021, along with ETS Strategic Capital on behalf of assessment organisation ETS.
Other investors in this round include King Street Capital Management, Drakes Landing Associates, and Pennington Alternative Income Management.
Founded in 2014, MPOWER announced an expansion to Canada in 2018. Its loans are approved instantly using a proprietary algorithm to analyse credit data and future earning potential, and are then granted at “competitive” interest rates without requiring a cosigner or collateral.
General manager of MPOWER’s India Office Ashwini Kumar indicated it this which creates the company’s appeal.
“When I did my MBA in the US, financing options like MPOWER, which don’t require collateral or a cosigner, didn’t exist,” Kumar said.
“So, the financial burden fell on not just me, but by my parents as well. MPOWER makes it possible for future generations of students to access the world’s top universities without this financial pressure, allowing them focus on their academics and career.”
“MPOWER Financing as it operates a truly differentiated business model”
MPOWER also provides students with academic, financial and career guidance, which it says positions students for success both in school and after graduation.
“We are excited to partner with MPOWER Financing as it operates a truly differentiated business model where it not only lends to students, but also offers career guidance and supports students throughout their journey,” added Chris Gamaitoni, managing director of Tilden Park Capital Management.
“The team’s mission and commitment to their students are inspiring. We are thrilled to support MPOWER Financing as it continues to expand its global reach and support even more students. We look forward to building on the company’s successes together.”