Prodigy Finance raises $100m from Balderton et al.

A breakdown for the $100m round was not disclosed, but unquote" sources revealed it included a $12.5m equity injection by Balderton. The VC invested alongside a number of angel investors including Edward Wray, currently a director at financial services LMAX Exchange and Funding Circle.

In addition, the transaction featured a $87.5m loan from Credit Suisse, according to the same sources. The bank had an existing relationship with Prodigy Finance after the duo announced a joint $25m scheme for investments in higher education programmes in October 2014.

Balderton, who will acquire a minority stake in Prodigy Finance, drew equity from its $305m fifth fund. Specialised in series-A financing, the vehicle was used to back UK-based companies such as online direct debit service GoCardless and fashion e-commerce website Lyst – the latter receiving $14m via a series-B round in January 2014.

The fresh funds will assist Prodigy Finance as it looks to grow by 400% over the course of 2015, and then enter the Asian market, a move expected to take place next year. According to the company's figures, the last eight years have seen it arrange $130m in loans for more than 2050 students across 92 nationalities.

The alternative lender foresees growth within its segment amid increasing difficulties among international students to secure financing for their studies from traditional, cross-border sponsors after the economic crisis.

The round is the latest in a string of large-scale growth capital injections recorded by unquote" in recent months. In February 2015, London-headquartered international money transfer service WorldRemit also received $100m in a series-B from Technology Crossover Ventures and Accel Partners. 

Company
Founded in 2007 by three MBA graduates, Prodigy Finance offers loans for international attendees to finance their postgraduate studies across business schools such as Insead, Wharton, Chicago Booth, Columbia Business School and London Business School.

With headquarters in London, the business is also present in South Africa from its Cape Town office and is understood to have tripled its workforce ranks in the last two years.

People
Balderton's work on the deal was led by general partner Tim Bunting. Cameron Stevens co-founded Prodigy Finance and is the company's current CEO.

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• Topics
• UK / Ireland
• Expansion
• Financials
• United Kingdom
• Balderton Capital
• Credit Suisse