International Student Lender, Prodigy Finance, raises $240 million for expansion

UK-based online student lender, Prodigy Finance has raised $240 million in debt and equity to speed its expansion within the United States.

Prodigy Finance provides postgraduate loans to international students with no alternative access to finance. The new fund includes a $40 million Series C equity round led by international venture capital firm Index Ventures, with participation from Balderton Capital and AlphaCode; and a $200 million debt facility led by a global investment bank.

Prodigy Finance’s unique global credit model assesses applicants based on projected earnings rather than historical credit, allowing the company to provide funding to students without collateral, a cosigner or guarantor. To date, more than 80 per cent of its borrowers have had no alternative access to financing. It also enables qualified investors, and the alumni of top schools, to assist students from their alma mater or home country, while earning a financial return.

According to Cameron Stevens, Founder and CEO of Prodigy Finance,“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. 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.

This fundraise will help the company increase its operational expansion and provide additional funding for students taking postgraduate degrees in business, engineering, law and public policy at the world’s top 100 universities including INSEAD, London Business School, Cambridge Judge Business School, Stanford University and Harvard University.

Prodigy Finance was started by three INSEAD MBA graduates who experienced the difficulties of financing an international degree first-hand. Over the last ten years, the company has provided more than $325 million in funding to over 7,100 students, 78 per cent of whom come from emerging markets.