Tala, the consumer lending app in emerging markets, announced Monday (Oct. 22) a strategic investment from PayPal.
In a press release, Tala said the undisclosed investment from PayPal will help the company bring visibility and access to underserved regions in emerging markets across the world. According to Tala, more than two-thirds of the adult population in the world has no formal credit record, which makes it hard for them to access traditional financial services. It also makes it difficult for the traditional financial services companies to reach these consumers.
Tala’s Android-based app analyzes device and behavioral data to instantly underwrite the consumers and create a loan offer. Tala noted in the press release that more than 85 percent of its customers receive credit in under 10 minutes. The company said its loans, which are between $10 and $500, are dispersed to a mobile wallet or via a payment method of the customer’s choice.
“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 for PayPal, in the press release announcing the investment. “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 said the new investment builds on its Series C round of venture funding announced in April, which is being led by Revolution Growth.
“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 of 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.” Tala currently operates in Kenya, Tanzania, the Philippines and Mexico, and has launched a pilot in India. The company said it has delivered more than $500 million in credit to millions of customers.