Fintech platform MPOWER Financing, which provides educational loans to international and DACA students, has raised $25 million from Tilden Park Capital Management, a New York-based investment management firm.
The funds come in addition to the $9 million MPOWER raised last year. The company said the funding will be used to automate its digital loan platform, whose underwriting technology provides a loan decision to students within minutes.
The company will grow its team in Bengaluru and expand in the US with the latest funding. It also plans to hire 50 plus employees this year across engineering, marketing, operations, underwriting, analytics, HR, and finance.
“We will benefit from Tilden Park’s experience in capital markets and credit expertise, as well as their global investment experience,” said Manu Smadja, MPOWER Financing’s CEO and Co-founder.
“Tilden Park was attracted to MPOWER’s strong credit quality and social mission,” added Manu.
The Bengaluru and Washington DC-based company works with over 350 top universities and colleges across the US and Canada to provide financing to students from over 200 countries. Since 2014, it has received over $2 billion in loan application volume on its platform.
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The startup helps students build their credit histories and provides them with personal finance education and career support to help prepare for life after school.
The startup was named one of the best places to work in Washington DC, one of the best tech workplaces for diversity, and one of American Banker’s top fintech firms to work for the third year in a row.
Earlier, in 2019, MPOWER Financing secured a $100 million debt from Goldman Sachs, which had brought its total loan financing capital to $200 million.