Kenya’s Tala Raises More Than US$30 Million to Launch in New Markets

Tala, a US mobile technology and data science company, has raised more than US$30 million in a Series B funding round led by later-stage venture capital and growth equity firm, IVP.

Launched in 2011, Tala, which has an office in Nairobi, Kenya and operates in East Africa and Southeast Asia, is working to change the way credit scoring and financial services work around the world.

Through its mobile app, Tala aggregates more than 10,000 different data points on a customer’s device, including financial transactions, savings, network diversity, and geographic patterns, and builds a customized credit score, or financial identity.

Once a customer has been scored through the app, he or she can quickly apply for credit and receive an instant decision. The size and terms of the credit product are customized based on a customer’s risk and capacity.

Credit is disbursed directly to customers’ mobile money accounts in less than 5 minutes, and customers repay their loans directly from the app.

Tala has delivered more than one million loans totaling over US$50 million, and more than one million individuals have accessed the product in East Africa alone.

The startup will use the fresh funds to accelerate product development, expand into new markets, and build its internal team. Jules Maltz, General Partner at IVP, will join Tala’s Board of Directors as part of the deal.

“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,“ Jules Maltz stated.

He added, “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.”

Joining IVP in the funding round is Ribbit Capital, and existing investors Lowercase Capital, Data Collective, Collaborative Fund and Female Founders Fund (F3).


About Emerald Mandela 1551 Articles
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