AlphaCode, the FinTech investment arm of South Africa's Rand Merchant Investment Holdings, has participated in Prodigy Finance's Series C equity financing round of $40 million (R532 million). The Series C round was led by venture capital firm Index Ventures.
Prodigy Finance is a lending platform that provides loans to postgraduate international students from 150 countries attending the world’s top universities. The FinTech company has offices in London, Cape Town, and New York and offers loans to students at universities such as Harvard, Oxford, INSEAD and the University of Cape Town.
“Prodigy Finance has a truly differentiated business model solving a real customer need, and is powered by a talented team – it is one of the leading lights of international fintech," said Dominique Collett, Head of AlphaCode.
The Series C round is part of Prodigy Finance's larger $242 million (R3,19 billion) fundraising.
Community-based financing for international postgraduate students. | Prodigy Finance
“We’re excited about this investment as it will help us double the size of our student portfolio. We saw a market failure in international lending and have spent the last decade rectifying this problem. Our business model and the schools we work with have also allowed us to build a talented team of experts, including our tech professionals and programmers in Cape Town. We believe in financial inclusion and talent mobility, and look forward to continuing to help international students break the funding barrier and further their education at a top school,” said Cameron Stevens, Founder and CEO at Prodigy Finance.
The FinTech company is also celebrating its tenth annivessary to co-incide wit the fundraising.
What makes Prodigy Finance unique is its credit model which assesses students' projected earnings rather than historical credit.
Added to its primary role of providing postgraduate students' study loans, Prodigy Finance also allows qualified investors, and alumni of top universities, to help fund students from their alma mater or home country, while earning a financial return.