Mobile credit firm Tala has raised more than $30 million in Series B financing

Mobile credit firm Tala, formerly known as Mkopo Rahisi (Inventure), has raised more than $30 million in Series B financing led by IVP and joined by Rabbit Capital. Additional participants include existing investors Lowercase Capital, Data Collective, Collaborative Fund and Female Founders Fund (F3). As part of the financing, Jules Maltz from IVP has joined Tala’s Board of Directors. The raised funds will be used to:

  • Accelerate product development
  • Expand into new markets
  • Build its internal team

“From day one, Tala’s mission has been to change global financial systems so that people have more access, choice and control. With this new round and team of phenomenal investors and advisor, we are positioned to connect millions of underserved people to financial services that can advance their lives.”

-Shivani Siroya, Founder and CEO, Tala

Tala currently operates in East Africa and South East Asia targeting 2 billion people globally underserved by traditional finance companies. Based on customer profile and the loan size, Tala gives loans of up to Ksh.50,000 via M-Pesa at 11 percent interest rate per annum with a repayment period of six months. Tala has successfully delivered more than one million loans totaling over $50 million with a track record repayment rate of 90 percent.

“By using smartphone data to build financial identity, Tala is pioneering a new model that can reach more than two billion people globally who have been underserved by traditional finance companies. We are thrilled to partner with Shivani and the Tala management team to help accelerate Tala’s next phase of growth and unlock capital and opportunity for millions of people across the world.”

-Jules Maltz, General Partner, IVP

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Online credit platforms have attracted many investors with new entrants including Branch International Inc., Okoa Stima and KCB M-Pesa among others. We should expect to record an increase in mobile credit lending driven by:

  • Accessibility of the loans
  • High demand from the middle income population
  • Instant loans that take five minutes unlike the long approval processes witnessed in traditional banking methods
  • Growth of alternative lending channels in Kenya, given the banking rate caps, which has orphaned most unsecured borrowers from the bank lending

Tala is a leading mobile technology and data science company that is working to change the way credit scoring and financial services work around the world. Through its mobile app, Tala connects over 10,000 data points per customer to create an instant credit score and deliver customized financial services. Tala is headquartered in Los Angeles with additional offices in Nairobi and Manila.

Mr. Felix
A Math Nerd and a Computer Geek. Currently a Windows 10 Insider. Interested in AI, big data and AR/VR. Takes a keen interest in developments in the tech, business and social media spheres.

Mr. Felix

A Math Nerd and a Computer Geek. Currently a Windows 10 Insider. Interested in AI, big data and AR/VR. Takes a keen interest in developments in the tech, business and social media spheres.

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