PayPal-Backed Digital Lenders Raise $110 Million
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PayPal-backed digital lender Tala has raised another $110 million to enter the Indian market, increasing the firm’s total estimated value to more than $750 million.
The five-year old California-headquartered startup specializes in digital lending, building credit profiles based on customer texts, call logs, merchant transaction, app usage and other behavioral data through an Android app. Loans can then be approved within minutes and the firm has lent over $1 billion to more than 4 million customers, up from $300 million and 1.3 million customers last year.
The firm has raised over $215 million, according to a media report, and the latest round’s funds will be used to enter the India market. Prior to the launch, the firm conducted a 12-month pilot program to research the market and also set up a tech hub in Banglore.
In addition to India, a portion of the funds will be used to expand to existing markets including East Africa, Mexico, and the Philippines and also build new solutions. Moving forward, Tala is also eyeing other markets in South Asia and Latin America.
Questions & Answers
Q.How does Tala assess creditworthiness for its loan applicants?
How does Tala assess creditworthiness for its loan applicants?
Tala builds customer credit profiles using data from their texts, call logs, merchant transactions, and app usage. This behavioral data is gathered through its Android app, allowing for quick loan approvals.
Q.What is the total value of Tala after this latest funding round?
What is the total value of Tala after this latest funding round?
Following the latest funding round, which raised $110 million, Tala's estimated total value has increased to more than $750 million. This significantly boosts the five-year-old startup's valuation.
Q.Which new markets will Tala be expanding into with the recently raised funds?
Which new markets will Tala be expanding into with the recently raised funds?
The recent $110 million funding will primarily be used to enter the Indian market, after a 12-month pilot program. A portion of the funds will also support expansion in South Asia and Latin America, alongside existing markets.
Q.What is Tala's lending volume and customer base currently?
What is Tala's lending volume and customer base currently?
Tala has lent over $1 billion to more than 4 million customers to date. This marks a substantial increase from last year's figures of $300 million lent to 1.3 million customers.
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