Mobile loan service Tala has received Ksh. 11 billion ( USD 110 Million) series D funding to expand its business operations in the countries it operates in.
The new round was led by RPS Ventures with participation from GGV Capital and previous investors including IVP, Revolution Growth, Lowercase Capital, Data Collective VC, ThomVest Ventures and PayPal Ventures. Kabir Misra, Founding General Partner at RPS Ventures, has also joined Tala’s board of directors. Tala has raised an additional Ksh. 1 billion ($100 million) in debt financing over the past year, including Ksh. 500 million ($50 million) led by Colchis Capital specifically for the Kenyan market.
Tala plans to launch new products and it also now offers free financial education and community building services, both online and offline in Kenya. The company is also piloting a new micro-insurance product in Kenya.
The company now operates in Kenya, Tanzania, Philippines, India, and Mexico and has plans to expand to several other countries in the next five years. It has disbursed loans to over 2.5 million customers. Tala is backed by leading venture and impact investors including PayPal, Revolution Growth, IVP, and Lowercase Capital. Tala is headquartered in Santa Monica with additional offices in Nairobi, Manila, Dar Es Salaam, Mexico City, and Bangalore.
The service used to give loans to customers of upto Ksh. 10,000 (USD 100) in Kenya but it was increased to Ksh. 50,000 (USD 500). The loans are available through an Android app and then disbursed via Safaricom M-Pesa.
If you qualify to get the loan, you can choose to repay in two installments within a month or the full amount at the end of the month. Once your loan has been approved it is sent to your Safaricom number via M-PESA. Loan repayments are also done via Safaricom M-PESA (Paybill number 851900).
One you repay a loan on time, your loan limit increases. There are three loan tiers on Tala:
Bronze: Ksh. 500 – Ksh. 4,999
Silver – Ksh. 5,000 – Ksh. 9,999
Gold – Ksh. 10,000 – Ksh. 50,000
The Tala interest rate is between 11% & 15% which is high when compared to its competitors