Student loan platform Prodigy Finance raises $240 million in debt and equity funding

Prodigy Finance, a UK fintech company that provides loans to students, has raised $240 million in debt and equity funding.

The round of funding is made up of $200 million in debt led by an unnamed global investment bank and a Series C round of $40 million in equity led by Index Ventures with participation from Balderton Capital and AlphaCode.

Prodigy Finance provides loans to postgraduate students so they can study internationally in the US or Europe. The new funds will be used to expand further in the US.

The company targets its services to students in emerging economies that may struggle to secure financing for higher education due to lack of credit history.

“International students play a key role in the graduate school ecosystem by contributing to revenue and improving the institution’s overall diversity; a determining factor when it comes to league tables and global rankings,” said Cameron Stevens, CEO of Prodigy Finance (pictured). “We saw a market failure in international lending and have spent the last decade rectifying this problem.”

Prodigy’s platform provides loans to students based on the potential of their chosen field of study and plans to add new courses, especially in the US, that will be eligible for loans.

“Prodigy Finance is an example of an entrepreneurial financial services company using an innovative model to offer something of great value that is not available from traditional lenders,” added Neil Rimer, partner at Index Ventures.

The company previously raised over $100 million in debt and equity in 2015.

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