Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Tala clinches $110 million for inclusive micro-lending and alt-credit scoring



ImpactAlpha, August 22 –Santa Monica-based Tala was an early entry in alternative credit-scoring, using “daily life” information to underwrite small loans of $10 to $500 for informal business owners and unbanked adults. The underwriting analysis includes data points like how busy an owner’s shop is or when their inventory arrives, as well as transaction data from borrower’s mobile phones.

Tala has seen extraordinary growth in the past year. It tripled its loan originations to $1 billion since raising a $65 million Series C round last year. It now serves four million customers in Kenya, Tanzania, the Philippines, Mexico and India and says its repayment rates are above 90%.

The company’s $110 million Series D funding round will support an expansion effort in India in particular. The round was led by RPS Ventures, with backing from GGV Capital and prior investors IVP, Revolution Growth, Lowercase Capital, Data Collective VC, ThomVest Ventures and PayPal Ventures. 

Tala is also investing in its underwriting platform, recently undertaking a study on algorithmic bias. “We don’t want to include things in our models that could bias us against customers unfairly,” founder Shivani Siroya said in an article last year for Wired. “We don’t add gender. We don’t add location. We don’t add the number of languages someone speaks.”

You might also like...