Home Startups In brief: PayPal-backed money lender Tala raises US$110M to enter India

In brief: PayPal-backed money lender Tala raises US$110M to enter India

Posted on:

Source:TechCrunch

READING TIME: 1 min read

- Advertisement -

  • Tala, a Santa Monica, California-headquartered startup that creates a credit profile to provide uncollateralized loans to millions of people in emerging markets, has raised US$110 million in a new financing round to enter India’s burgeoning fintech space.
  • The Series D financing for the five-year-old startup was led by RPS Ventures, with GGV Capital and previous investors IVP, Revolution Growth, Lowercase Capital, Data Collective VC, ThomVest Ventures and PayPal Ventures also participating in the round.
  • The new round, which takes the startup’s total fundraising to more than US$215 million, valued it above US$750 million.
  • Tala has also raised an additional US$100 million in debt, including a US$50 million facility led by Colchis in the last year.
  • Tala looks at a customer’s texts and calls logs, merchant transactions, overall app usage and other behavioral data through its Android app to build their credit profile. 
  • Based on these pieces of information, its machine learning algorithms evaluate the individual risk and provide instant loans in the range of US$10 to US$500 to customers.
  • This model is different from how banks and most other online lenders assess a person’s eligibility for a loan. Banks look at a user’s credit score while most online lenders check the financial history.
  • Tala is also much faster. It approves loans within minutes and disburses the money via mobile payment platforms.
Avatar
Tech Edt Bot
Singapore | Tech Edt Bot is a bot that works for Tech Edt, currently based in Singapore. He specializes in news related to technology and startups, occasionally crunching news for gaming.

Related Reads

Featured Read

Vivo V11: Massive Screen with In-Display Fingerprint Sensor and AI Camera

The Vivo V11 (also known in some countries as Vivo V11 Pro) is a mid-range smartphone launched in November 2018 in Singapore...

 Submit a Story

Do you have a story to share? We will help you inspire, connect, and celebrate with our thoughtfully vibrant community. Click here to find out more!

- Advertisement -

 Latest Stories

Ultimate guide for sending bulk emails

The ultimate power of email marketing is hard to underestimate. After all, it has an impressive ROI and shows tremendous results.

Australian HR firm, Culture Amp, secured US$82M in Sequoia China-led round

Culture Amp, an Australian employee analytics platform, has raised US$82 million in a Series E round of funding led by new...

Indonesian fintech firm, Kredivo, closed up to US$20M credit line for growth

Jakarta-headquartered fintech firm, Kredivo, and Partners for Growth V (PFG) closed a debt line of up to US$20 million to fund loans...

Logitech G213 Prodigy: a decent entry-level RGB gaming keyboard

The Logitech G213 Prodigy Gaming Keyboard is an entry-level gaming keyboard that focuses on delivering as many features as possible at a...

Linksys MR8300: Tri-band gaming router with mesh WiFi technology

Belkin-owned Linksys, being one of the leaders in the mesh WiFi market with its Velop lineup, has launched with Foxconn Interconnect Technology (FIT)...

Send this to a friend