Tala, the leading consumer credit app in emerging markets, today announced a strategic investment from PayPal (NASDAQ: PYPL).
The two companies are committed to building financial health and giving everyone access to the digital economy. PayPal’s investment will help Tala increase visibility and access to underserved populations in emerging markets around the world.
More than two-thirds of the world’s adult population lacks official credit reporting agencies, making it difficult for traditional financial services to understand and reach these consumers. Tala’s app, which anyone with an Android smartphone can access in Tala’s stores, analyzes device and behavioral data to instantly sign those consumers and create a personalized loan offer. Tala pays out loans between $ 10 and $ 500 to a mobile wallet or through a payment method of the customer’s choice. More than 85% of Tala customers receive a 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, PayPal’s senior vice president and general manager, global lending. “Tala shares our vision of redefining financial services, especially for non-banks and those underserved by the traditional financial system. Tala empowers these people to improve their overall financial health through innovative mobile solutions, and we pride ourselves on helping them achieve that goal. “
“Tala is based on the belief that all people deserve to be seen, understood and trusted by the global financial system. Our goal is to use data and technology to demonstrate their potential,” said Shivani Siroya, Founder and CEO of Tala. “We are excited to add PayPal as an investor to further our mission to reach underserved consumers and ensure the financial access, choice and control they deserve.”
The new investment builds on Talas Series C funding announced in April and led by Revolution Growth.
Tala currently operates in Kenya, Tanzania, the Philippines and Mexico and has started a pilot project in India. The company has loaned more than $ 500 million to millions of customers. Tala employs more than 300 people in offices in Santa Monica, Nairobi, Dar es Salaam, Manila, Mexico City and Bangalore.