Fintech firm Tala has raised another $145 million led by new investor Upstart. The investment, part of the company’s Series E round, has also been backed by a clutch of other new and existing investors, including Stellar Development Foundation, Kindred Ventures, J. Safra Group, Lowercase Capital and PayPal Ventures. Paul Gu, Co-founder of Upstart, and Denelle Dixon, CEO and Executive Director of Stellar Development Foundation, have joined Tala’s board.
The latest move takes Tala’s total funding to more than $350 million. Headquartered in the US, the company extends micro loans ranging from $10 to $500 to individuals in India, Kenya, Mexico and the Philippines, Tala, which entered India in 2020, says that more than half a million users have signed up for its services in the country.
Founded in 2011, Tala essentially offers digital financial services to help the traditionally underbanked borrow, save and grow their money. The firm said it has given more than $2.7 billion in credit to over six million customers across Kenya, India, Mexico and the Philippines.
Tala will deploy the fresh capital to accelerate the rollout of its new financial account experience, advance geographical and product expansion plans and build its team. It said it will leverage the Stellar network to develop the first mass-market crypto product for emerging markets.
In addition to payments and savings, Tala’s evolved account will offer an expanded range of personalised credit options, including longer-term loans and credit that can be configured to match customers’ income cycles, the company said.
“Tala has spent the past seven years delivering critical services in markets where the financial system is fundamentally broken for millions of people. This new investment will accelerate our path to becoming the primary financial account for the global under-banked and helping millions more people make progress in their financial lives,” said founder & CEO Shivani Siroya.