Los Angeles-based micro-loan startup ‘Tala’, has secured $110 million Series D funding. The round was led by Silicon Valley venture capital firm RPS Ventures, with participation from PayPal, Revolution, and Capital and Data Collective.
The firm plans to leverage the fund which values it at about $800 million to expand its services to West Africa, Asia, and Latin America. The company also plans to deepen its reach in India, where it has been in operation since 2018. Since its inception, Tala has raised over $200 million in equity investment since its inception.
Tala will also leverage the fund to launch new services like micro health insurance in partnership with health facilities in Kenya, financial education, as well as coaching products for its clients.
See also: Nairobi-based Mr Green Africa secures Undisclosed Funding from DOB Equity & Global Innovation Fund
Founded in 2011 by Shivani Siroya, Tala is a micro-loan platform which can be accessed via the mobile app. The app allows users across Kenya, the Philippines, Tanzania, Mexico, and India to access small loans of about $10 to $500.
The app leverages users cell phone data instead of credit scores to access borrowers risk. The app access users habits like; prompt bill payment etc. These habits determine if an applicant will receive the loan or not.
Tala launched in Kenya in 2014. Currently, it serves about four million customers who access three to six loans yearly at 10% monthly interest rate. The firm currently employs about 600 people across its Santa Monica, Kenya, Mexico, Philippines, and India offices.
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