Financing Services startup MPOWER raises funding from Zephyr Peacock

Financing Services startup MPOWER has raised $6 million (Rs 40 crore) from private equity fund Zephyr Peacock. Other investors in the round included University Ventures, 1776 Ventures, Goal Structured Solutions, VilCap Investments, and Fresco Capital.

MPOWER removes financial barriers to higher education in the US by working with investors and universities to lend to high-potential students who are left out by traditional banks. In addition to providing students with access to the financial resources necessary to attend and complete college, MPOWER builds students’ credit histories, provides them with personal finance education, and offers gateway financial products to prepare them for life after college. Their foray into the Indian market is likely to help aspiring student to have a seamless higher education in the US.

“However, these loans are only available to US citizens or permanent residents. International students have to rely on scholarships and financing from home countries, and cannot avail low-cost available loans in the US. Considering that most of the Chinese students fund their education through family savings, India becomes the most important market for MPower. Hence, the company plans to build local presence to cater to the huge market Indian student’s offer,” Abhijeet Kudva, Director, Zephyr Peacock India was quoted saying.