MPOWER, a Washington D.C.-based student loan fintech company, has raised $110 million in funding. Gray Matters Capital and Community Investment Management led this round of funding. And MPOWER Financing provides educational loans to high-potential international and DACA students.
This round of funding will be used to support new product growth and technology enhancements. And it will also finance MPOWER Financing’s expanding student loan portfolio.
“The raise is a testimony to the importance of financial access to global education and the central role that international students play in U.S. and Canadian universities,” said MPOWER Financing CEO and co-founder Manu Smadja in a statement. “The round brought together a diverse mix of domestic, international, traditional and impact-focused investors such as Breega Capital, Potencia Ventures, and University Ventures. All existing MPOWER Financing investors with an active fund re-upped their commitment including Village Capital, 1776, VARIV, Fresco Capital, Zephyr Management, K Street and Goal Structured Solutions.”
MPOWER Financing currently works with over 200 top universities and colleges across the country to provide financing to students from over 200 countries. And MPOWER Financing enables students to build their credit history and provides them with personal finance education and career support in order to prepare for life after college
Since 2014, MPOWER received nearly $1 billion in loan application volume through its platform. The funds are provided by Lloyd Crescendo Advisors.
Erika Norwood, executive director at Gray Matters Capital, said that investing in MPOWER Financing was a no-brainer. Norwood pointed out that many lenders talk about leveling the playing field so that quality education is accessible, but MPOWER is actually doing it.
And Jacob Haar, managing partner and head of investments and operations for Community Investment Management, said that his team looks for lenders with alternative lending methodologies which serves creditworthy borrowers with transparent and responsible loan terms.
“We co-created a unique type of debt with Community Investment Management’s leadership team. This $100M is just the beginning of MPOWER’s Capital Markets roadmap,” added MPOWER Financing Chief Investment Officer and co-founder Mike Davis.