On Monday, Tala – a fintech startup lending the unbanked consumers in emerging markets – announced it has received funding from PayPal Inc. Holdings.
Though Tala remains tight-lipped on the amount received, experts believe the investment was a strategic move for PayPal. The fintech startup says the funds will go towards broadening its reach and developing its product.
Tala currently lends to individuals across Kenya, Tanzania, Mexico, and the Philippines through a smartphone app. The company reports having lent out over $500 million to customers across these markets and employs about 300 people.
Tala is one of the many growing cohort of fintech businesses capitalizing on the widespread adoption of smartphone and internet across emerging markets. Also were traditional banking infrastructure have not yet reached the everyone, with a big segment of the society remaining unbanked.
Traditional banks, through fear of the risky individuals, have shied away from such markets, especially if they don’t have a payslip and/or collateral to secure their loans. It is interesting to note that more than 75% of adults across the globe do not have a record with a formal credit bureau. That is …read more
Read more here:: The fintech startup Tala secures undisclosed funding from PayPal