UK’s Prodigy Finance raises $240M to crowdfund students from rising markets

UK fintech startup Prodigy Finance has lifted a whopping $240 million appropriation round, positively one of a largest by a UK association this year. The association provides loans to general students from rising markets, enabling them to investigate during business schools in a US, a UK and Europe.

The fundraise includes a $40 million Series C equity turn led by London’s Index Ventures, with appearance from Balderton Capital and AlphaCode, an accelerator in Africa; and a $200 million debt trickery led by an unnamed “global investment bank”.

With a series of general students foresee to strech 8 million by 2025 Prodigy Finance is clearly sitting on a flourishing market.

The association founded what it describes as a world’s initial globally enforceable credit model, and works usually with heading universities. The annual amends rate of over 99% is ensured by crowdfunding loans from alumni from universities such as such as INSEAD, London Business School, Cambridge Judge Business School, Stanford University and Harvard University.

That means students are ‘reputationally invested’ in their possess education, and it allows alumni to support their alma mater. Qualified investors, and a alumni, also acquire a financial return. It’s Philanthropy 2.0, if we will.

Prodigy assesses field formed on their projected earnings, not their credit history. That opens adult preparation to literally anyone, and is generally geared to those from rising markets.

In a final 10 years it’s supposing some-more than $325 million in appropriation to over 7,100 students, 78 per cent of whom come from rising markets. The organisation is now augmenting a US footprint, where general students contributed $32.8 billion and 400,000 jobs to a US economy during a 2015-2016 educational year.

Cameron Stevens, Founder and CEO of Prodigy Finance, said: “Students from rising economies such as China, Brazil and India face hurdles in accessing financing for education, even with high certification and glorious credit quality. This investment will assistance us double a distance of a tyro portfolio. We trust in financial inclusion and talent mobility, and demeanour brazen to stability to assistance general students mangle a appropriation separator and serve their preparation during a tip general university.”

Ilian Mihov, Dean of INSEAD, said: “Prodigy Finance has worked with INSEAD for roughly 10 years now. About 25% of a students are saved by Prodigy Finance loans and they come from all over a world, many from countries where it would be formidable to get a bank loan or other forms of financing. It’s an critical source of appropriation during INSEAD and helps minister to diversity, as we have over 90 opposite nationalities represented. Diversity is essential to a DNA, as it’s a source of creativity and understanding.”

Featured Image: BrianAJackson/Getty Images

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Posted by on Aug 22 2017. Filed under Europe. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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