On Monday, UK-based higher education lending platform, Prodigy Finance, announced it secured $240 million for international student funding. According to the online lender, the new investment includes a $40 million Series C equity round, led by international venture capital firm Index Ventures, with Balderton Capital and AlphaCode also participating, as well as a $200 million debt facility led by an undisclosed global investment bank.
Speaking about the funding round, Cameron Stevens, Prodigy Finance’s CEO, stated:
“The investment will allow us to 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 top schools.”
Prodigy Finance also noted that the investment enables strategic growth plans that will increase its footprint. In addition to assisting new students with financing, plans are underway to provide refinancing for students that have student debt at higher interest rates, credit secured with collateral, or other unfavorable conditions on their existing loans. The lender noted:
“Prodigy Finance’s student loans are collectively funded by a community of alumni, institutional investors and qualified private investors who receive both a financial and social return. Students gain access to higher education that they might not otherwise be able to finance. This model enables alumni of top schools to help fund students from their alma mater or home country while earning a financial return.”
Prodigy Finance noted that since its launch in 2009, it has provided more than $325 million in loans that have been disbursed to over 7,100 students, with 78 percent of whom come from emerging markets.