Prodigy Finance closes Series C equity round and clinches a $200m debt facility.
Prodigy Finance closes a Series C equity round and clinches a $200m debt facility.
Fintech firms continue their assault on student debt. The latest development is that Prodigy Finance, which provides post-graduate loans to international students, has raised a whopping $240m in debt and equity capital.
Part of the fundraise is comprised of a $40m Series C equity round, which was led by renowned venture capital investor Index Ventures, with investment also coming from Balderton Capital and AlphaCode. The remaining $200m is a debt facility which comes courtesy of an unnamed global investment bank, and other investors.
The money will help the company to expand its operations globally, providing more funding to students taking postgraduate degrees at many of the world’s top 100 universities, including INSEAD, London Business School, Cambridge Judge Business School, Stanford University and Harvard University. Prodigy is currently on a mission to increase its US footprint. International students contributed $32.8bn and around 400,000 jobs to the US economy during the 2015-16 academic year, according to NAFSA research.
“Students from emerging economies such as China, Brazil and India face challenges in accessing financing for education, even with high credentials and excellent credit quality,” said Cameron Stevens (pictured), founder and CEO of Prodigy Finance. “This investment will help us double the size of our student portfolio. We believe in financial inclusion and talent mobility, and look forward to continuing to help international students break the funding barrier and further their education at a top international university.”
Prodigy has now been active for ten years, and has lent more than $325m to over 7,100 students during that time. 78 per cent of its borrowers hail from emerging markets. Its credit model emphasises projected earnings over historical credit, allowing greater flexibility than incumbent lenders are generally capable of. To date, more than 80 per cent of Prodigy’s borrower have had no alternative access to financing.