Prodigy Finance, a UK-based fintech platform, has raised $500 million in debt funding from Canada Pension Plan Investments to finance deserving college students for his or her worldwide training.
The funding spherical, led by CPP Investments by means of its wholly-owned subsidiary CPPIB Credit Investments Inc, will allow Prodigy Finance to develop right into a larger variety of markets – together with key areas akin to India, China, South Korea, and Singapore.
Founded in 2007 by South African pupil Cameron Stevens, Prodigy Finance supplies training loans to worldwide college students who enroll in enterprise faculties within the fields of Marketing, Business Administration, Engineering, Law, Human Resources, Public Policy, and Health Sciences amongst others. It supplies a novel world credit score mannequin, which assesses candidates on quite a few variables and presents loans to college students with out the necessity for safety, a co-signer, or a guarantor at greater than 800 faculties world wide.
Prodigy Finance is devoted to making college training potential for each deserving pupil no matter their socio-economic background. The firm claims to have financed over $1 billion in graduate training loans to over 20,000 high-potential college students from over 100 nations.
Mayank Sharma, Country Head, Prodigy Finance India, mentioned in an announcement,
“We are pleased to have secured this substantial infusion of funds. We are confident that this funding will prove instrumental in transforming the future of numerous deserving students across the Indian-subcontinent who otherwise would never have been able to follow their dreams of studying in a top foreign university.”
According to an official assertion, the corporate will use the funds to grant loans to post-graduate college students, with a significant give attention to college students from low-income and lower-middle-income nations and ladies.
Prodigy Finance considers itself a social enterprise. The firm mentioned that 75% of its pupil debtors come from growing nations and 34% from BRIC nations alone. The loans are funded by institutional traders, alumni, and certified non-public traders. The coupon repayments are made quarterly after a grace interval of 6-9 months.
Neha Sethi, Head of Capital Markets, Prodigy Finance mentioned attaining this vital funding milestone is one other step in the direction of attaining the corporate’s purpose of serving to over 25,000 college students yearly. The firm claims to have recorded 50 p.c year-on-year in purposes.
Prodigy Finance has just lately partnered with 12 new schools within the United States, taking the full depend to 800 schools and universities internet hosting 1000 postgraduate programs in its curriculum.
Earlier this yr, Prodigy Finance had raised $250 million from the US International Development Finance Corporation, taking the full capital raised to $750 million. The firm raised $12.5M in fairness funding and $87.5M in debt funding in August 2015 from Balderton Capital and Credit Suisse respectively.
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