MPower Financing launched a $100M debt round to fund more student loans - Technical.ly DC

Business

Aug. 18, 2017 10:23 am

MPower Financing launched a $100M debt round to fund more student loans

The company is looking to raise more funding for its students loans that help international students. With the launch of the round, cofounder Mike Davis became Chief Investment Officer.

Members of the MPower Financing team.

(Photo via Twitter)

MPower Financing announced plans this week to raise $100 million that will help fund student loans for international students and others who are left out of traditional lending.

The Dupont Circle–based company is seeking debt funding that will finance the student loans. It’s separate from an equity raise that would fund hiring and other growth at the startup, said cofounder Mike Davis.

The debt fundraising round, which is in progress, is a response to demand for the company’s loans, and Davis believes the added funding can help finance loans for about 5,000 students.

The new round comes on the heels of a move to partner with Bank of Lake Mills that made MPower Financing’s loans available in all 50 states, and a total of 223 institutions.

Founded in 2014, the company provides loans to international students and others who don’t fit traditional credit criteria, as Technical.ly DC reported. It’s structured as a B-Corp, so investors are putting money in hopes of a fiscal return as well as having an impact on students. The loans are also designed to help the international students establish credit for life after college.

“MPower helps them build that credit in a way that doesn’t treat them as second class citizens,” he said.

Along with the new round, MPower said Davis is stepping into the role of Chief Investment Officer. He said it will allow him to focus on the new and more sophisticated types of financing strategies that come with raises like a $100 million debt round, as well as building relationships. The company is also opening an office in New York’s financial district, where Davis will be based.

-30-
JOIN THE COMMUNITY, BECOME A MEMBER
Already a member? Sign in here

Advertisement

ThreatQuotient and Visa are partnering to strengthen payment data defenses

Who needs a wallet? Yombu is using biometrics to help make payments more easy

A new Reston HQ is giving StreetShares more room to grow

SPONSORED

DC

Join our Technical.ly Match beta, an opt-in alternative to recruiting

DC, SF, NYC

Nava

Experienced Software Engineer – Backend

Apply Now
Washington, DC

Nava

Infrastructure Engineer (DC, SF, NYC)

Apply Now
Baltimore, MD

Terbium Labs

Software Engineer

Apply Now

DC fintech leaders talk hiring at this event

This fintech startup wants to make it easier to pay off credit cards right away

Goodworld teams with payments company to help bank customers round up for charity

SPONSORED

DC

TEDCO’s Builder Fund is closing the investment gap for more entrepreneurs

Sign-up for daily news updates from Technical.ly Dc

Do NOT follow this link or you will be banned from the site!