Shivani Siroya is expanding Tala’s smartphone-enabled micro-loans to South Asia and Latin America, backed by IVP, one of Silicon Valley’s oldest and biggest venture firms.
Tala tracks 10,000 data points, including financial transactions and daily movements, to derive a credit score and underwrite loans.
Tala charges 11 percent on its loans; more than 90 percent have been repaid. Tala says it has made more than one million loans in East Africa totaling more than $50 million since 2014.
IVP was joined by Ribbit Capital and other existing investors. “The market is so big,” said IVP’s Jules Maltz. In emerging markets only 7% of female business owners have access to finance. Nearly 40% of Tala loans have gone to women.
On a project for the United Nations, Siroya interviewed 4,500 small business owners in nine emerging markets.
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Photo credit: TED