Prodigy Finance secures $750 million funding
The deal enables Prodigy Finance to continue to meet the growing demand for international student loans with applications up 50% year-on-year
Prodigy Finance, the fintech pioneer of cross-border lending for postgraduate international students, has secured a funding deal from CPP Investments, which will see the institutional investor provide up to US$500mn of financing to deserving students through its wholly-owned subsidiary CPPIB Credit Investments Inc. The deal enables Prodigy Finance to continue to meet the growing demand for international student loans with applications up 50% year-on-year.
The latest investment comes on top of a $250m facility Prodigy Finance agreed last year with America’s development bank, the U.S. International Development Finance Corporation (DFC), which partners with the private sector to finance solutions to critical challenges facing the developing world today. These DFC funds will be used to grant loans to postgraduate students with a primary focus on low-income and lower-middle-income countries (minimum 50%) and women (minimum 30%).
Founded on the belief that funding should not be a barrier to education, Prodigy finance is dedicated to making university education possible for every deserving student regardless of their socio-economic background. Every year, lakhs of Indians go abroad in pursuit of higher education; they require funds for both tuition and living expenses. Prodigy Finance is offering education loans to Indian students without the need for security, a co-signer or guarantor at more than 800 schools around the world, in the fields of Marketing and Business Administration, Engineering, law, Public Policy and Health Sciences.
In stark contrast to traditional lenders that base decisions on credit amassed to date, Prodigy Finance’s unique global credit model is forward-looking and assesses applicants on numerous variables. The entire loan application process takes place online, with the student signing their final loan agreement once they’ve reached campus. According to its Impact Report, 89% of those borrowers say they had limited or no other options to fund their degree, 99.77% of them successfully graduated their courses and 72% say their postgraduate degree has allowed them to pursue their dream career. To date, Prodigy Finance has funded over $1billion in graduate education loans, to more than 20,000 high-potential students from over 100 countries.
Head of Capital Markets Neha Sethi added, “Achieving this important funding milestone is another step towards achieving our goal of helping over 25,000 students every year.”
Derek Jackson, Managing Director, Head of European Credit, CPP Investments, said, “This financial commitment to Prodigy Finance is a great example of our ability to provide flexible funding solutions to complex business needs and fits well with CPP Investments’ credit strategy of investing our patient capital with leading partner organizations.”
Also speaking on the remarkable funding, Mayank Sharma, Country Head for Prodigy Finance India, said, “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.”
Prodigy Finance recently also partnered with 12 new colleges in the United States, taking the total count to 800 colleges and universities hosting 1000 postgraduate courses in its curriculum. Adding to this, the brand also achieved a world-first with its oversubscribed, inaugural AA-rated social bond issuance. Ever since its foundation in 2007, the company has dispersed $1 Billion amount of loans and paved a path for more than 20,000 students hailing from 135 countries to pursue their educational interests in the fields of marketing, finance, human resources, among others. The company has also resumed operations in markets such as the UK, France, and China.
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