Student lender Prodigy Finance raises over R3bn
UK FinTech Prodigy Finance has raised $240 million via a funding round. A borderless FinTech platform that provides finance to international students from emerging markets to study at top business schools in the UK, US and Europe, Prodigy is responsible for the world's world's first globally enforceable credit model.
The firm partners with the world's top 100 universities and its repayment rate stands at over 99%, thanks to crowdfunding loans from alumni. It will use the funds to expand its US footprint.
Prodigy has provided more than $325 million in funding to over 7 100 students in its 10 years of existence, and has never written off a loan
Prodigy said the fundraising includes a $40 million 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.
"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.
"We saw a market failure in international lending and have spent the last decade rectifying this problem. We're excited about this investment as it will allow us to continue to grow and ensure there are no barriers to achieving academic potential," said Cape Town-born founder Cameron Stevens.