London fintech Prodigy Finance raises $750m from financial investment giants
Prodigy Finance, released in 2007 just after founder Cameron Stevens struggled to get a loan for his MBA, netted the funding in a spherical led by Canadian non-public fairness fund CPP Investments, which has pledged up to $500 million in funding.
US improvement lender the DFC has agreed to give a $250 million facility aimed at granting loans to women and students from reduced-money nations. The taxpayer is already an investor by way of the Chancellor’s Upcoming Fund, together with venture money corporations Balderton Money and Index Ventures.
The fintech, which lifted $240 million in 2017, has presented around $1billion in cross-border loans to more than 20,000 learners from above 100 countries on a “Long run Earning Prospective credit rating design”. It has partnered with institutions which includes Harvard, Oxford and the Wharton Faculty.
New hard cash will be utilised for enlargement into “vital locations” which include China – which sends a lot more than 100,000 students to the British isles just about every calendar year – South Korea and Singapore.
The business recorded a 2020 pre-tax decline of £50.1 million, but Stevens told the Standard the company was hit by the economic crash of March-July 2020 and its “economic general performance in 2021 will paint a fully distinct tale”.
He exposed Prodigy is “on-track to turn a complete-yr gain for the first time in the company’s heritage”.
International university student figures have been seriously hit by Covid. Applications for the fintech’s financial loans jumped 50% yr-on-calendar year, nevertheless, and the company said it is presently benefitting from the work boom staying viewed across tech and specialist services as its purchasers protected roles.
Stevens stated: “This $750m elevate, which is one of the most significant of the calendar year for a Uk-dependent agency and much more than we have raised in 10 yrs of currently being in enterprise, showcases the concentrations of have confidence in and religion in our business enterprise design that our buyers have in us.
“The further more instruction marketplace is expanding apace yet again, and Prodigy Finance has a substantial part to perform in ensuring that students from everywhere can access the best schools in the environment.”
CPP Investments’ Derek Jackson reported the giant’s monetary motivation to Prodigy matches properly with its “credit score method of investing our affected person cash with main companion organizations”.