London-based fintech Prodigy Finance raises $ 750 million from investment giants

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Prodigy Finance, launched in 2007 after founder Cameron Stevens struggled to secure a loan for his MBA, secured the funding in a funding round led by Canadian private equity fund CPP Investments, which pledged up to $ 500 million in funding.

The US development bank DFC has agreed to provide a $ 250 million facility to provide loans to women and students in low-income countries. The taxpayer is already an investor through the Chancellor’s Future Fund, alongside venture capital firms Balderton Capital and Index Ventures.

The fintech, which raised $ 240 million in 2017, has provided more than $ 1 billion in cross-border loans to more than 20,000 students in more than 100 countries on a “credit model with future income potential”. He has partnered with institutions such as Harvard, Oxford and the Wharton School.

New funds will be used for expansion in “key regions” including China – which annually sends more than 100,000 students to the UK – South Korea and Singapore.

The company recorded a pre-tax loss of £ 50.1million in 2020, but Stevens told The Standard that the company was hit by the economic crash of March-July 2020 and that its “financial performance in 2021 will paint a rough spot. totally different story “.

He revealed that Prodigy was “on track to make a full year profit for the first time in company history.”

The number of international students has been hit hard by Covid. However, fintech loan applications have jumped 50% year-over-year, and the company said it is currently benefiting from the employment boom seen in tech and professional services as his clients get jobs.

Stevens said: “This increase of $ 750 million, which is one of the biggest of the year for a UK based company and more than what we have collected in 10 years of activity, shows the levels of confidence and faith in our business model that our investors have in us.

“The continuing education market is growing again and Prodigy Finance has a huge role to play in ensuring that students everywhere can access the best schools in the world.”

Derek Jackson, CPP Investments, said the giant’s financial commitment to Prodigy fits well with its “credit strategy of investing our patient capital with leading partner organizations.”


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