Tala, the leading consumer lending app in emerging markets, announced today a strategic investment from PayPal (NASDAQ: PYPL).
The two companies share a commitment to building financial health, enabling all people to gain access to the digital economy. PayPal’s investment will help Tala bring visibility and access to underserved populations in emerging markets across the globe.
More than two-thirds of the world’s adult population has no formal credit bureau record, making it difficult for traditional financial services to understand and reach these consumers. Tala’s app, which can be accessed by anyone with an Android smartphone in Tala’s markets, analyzes device and behavioral data to instantly underwrite these consumers and create a personalized loan offer. Tala disburses loans between $10 and $500 USD to a mobile wallet or via payment method of the customer’s choosing. More than 85% of Tala’s customers receive credit in less than 10 minutes.
“At PayPal, we believe that everyone should have access to transparent, convenient and secure financial services,” said Mark Britto, senior vice president and general manager of global credit, PayPal. “Tala shares our vision of reimagining financial services, especially for the unbanked and those underserved by the traditional financial system. Tala empowers these people through innovative mobile solutions to improve their overall financial health and we are proud to help them achieve this goal.”
“Tala is driven by the belief that all people deserve to be seen, understood and trusted by the global financial system, and our goal is to leverage data and technology to help them prove their potential,” said Shivani Siroya, founder and CEO, Tala. “We are excited to add PayPal as an investor to further our mission to reach more underserved consumers and deliver the financial access, choice and control they deserve.”
The new investment builds on Tala’s Series C financing, announced in April and led by Revolution Growth.
Tala currently operates in Kenya, Tanzania, the Philippines, and Mexico, and has launched a pilot in India. The company has delivered more than $500 million USD in credit to millions of customers. Tala has more than 300 employees across offices in Santa Monica, Nairobi, Dar Es Salaam, Manila, Mexico City, and Bangalore.