LA Startup Tala Closes $30 Million Dollar Series B Round
Tala is a Los Angeles startup that is helping the 2.5 billion people worldwide that don’t have a credit score. We’re not talking about people with no credit or damaged credit, we’re talking about globally. There are worthy people across the world that have no access to credit because they don’t have credit scores.
Tala operates in East Africa and Southeast Asia and they hope improve financial access “to an emerging middle class that has been operating outside the formal economic sector” reports the LA Business Journal.
The company uses over 10,000 data points aggregated on a users smartphone through their Android app to build a customized credit score. Information ranging from financial and savings to geography along with other data points are used to create a customized credit score. Then users can apply for a loan and get an instant decision.
“From day one, Tala’s mission has been to change global financial systems so that people have more access, choice and control,” said founder and CEO Shivani Siroya in a statement, adding that the new round will help Tala “connect millions of underserved people to financial services that can advance their lives.”
To date the company has given over one million micro loans ranging from $10 to $250. Users can have from three weeks to three months to pay the money back to Tala. The LA Business Journal reports that more than 95 percent of Tala’s borrowers return for additional loans and repayment rate is above 90%.
“By using smartphone data to build financial identity, Tala is pioneering a new model that can reach more than 2 billion people globally who have been underserved by traditional finance companies,“ added IVP General Parner Jules Maltz, who will join Tala’s board. IVP’s invsetment will “help accelerate Tala’s next phase of growth and unlock capital and opportunity for millions of people across the world.”
IVP led the $30 million dollar Series B round. Ribbit Capital, Lowercase Capital, Data Collective and the Collaborative Fund also participated. That brings their total funding to $44 million. Tala will use the money to invest in staffing, geographical expansion and product development