By Ananya Tawakley

Washington based fintech MPOWER said on Monday that it secured a US$150 million revolving asset-backed warehouse facility with Goldman Sachs. The Fintech provides non-co-signed loans to promising students across the world.

This latest funding will be used to amplify the student loans issued to students attending over 400 colleges and universities across the United States and Canada.

Head of capital markets at MPOWER Financing Christopher Zaki said, “Goldman Sachs has an established track record of raising and providing capital to innovative fintechs and we believe MPOWER’s growth trajectory, portfolio performance and global ecosystem supporting students around the world aligns with previous relationships in the sector.”

The fintech had raised funds from Deutsche Bank in 2022. In addition, it had also raised US$100 million in equity capital in 2021 from a consortium of investors, including Tilden Park Capital Management and King Street Capital Management.

The firm’s loan process is fully digital, and as many as 45 per cent of its customers are first-generation college students, and related to STEM disciplines. STEM is an acronym for science, technology, engineering and mathematics.

CEO and co-founder of MPOWER Financing Manu Smadja,said “We are thrilled that Goldman Sachs is supporting the MPOWER team as we contribute to the important mission of making higher education and socioeconomic mobility accessible to the millions of international and Deferred Action for Childhood Arrivals (DACA) students studying in North America.”

Smadja said that 91 per cent of their students say that an MPOWER loan is instrumental to their ability to study abroad. “So this funding will enable us to further democratize access to higher education,” she adds.