Tala has secured a US $150 million debt facility to expand its operations in Mexico. This funding will enhance its lending capabilities, focusing on small business owners. Tala serves over 3 million clients in Mexico, providing substantial loans without traditional credit checks. Plans for further expansion in Latin America are also underway.
Tala, a California-based microlender, has announced its intentions to expand operations in Mexico following the acquisition of a US $150 million debt facility from Neuberger Berman, an investment management firm based in New York. This funding will bolster Tala’s growing business and support its mission of developing scalable, data-enabled financial services.
The facility includes an initial commitment of US $75 million, providing Tala with access to a total of US $150 million, marking its largest capital markets transaction to date. This financial backing highlights the robust growth trajectory Tala is experiencing in Mexico, where it serves over 3 million clients with loans totaling over US $500 million last year.
CEO Shivana Siroya stated that many clients are small business owners and indicated that the capital will primarily be directed toward the expansion of Tala’s services in Mexico. She emphasized the importance of creating new partnerships and enhancing the value provided to clients through higher credit limits and innovative pricing policies.
Currently, Tala offers personal loans in Mexico with a maximum of 10,000 pesos (approximately US $500) and a minimum of 500 pesos (US $25). The loan durations range from 15 to 61 days, with interest rates starting at 11%. Clients can apply via Tala’s mobile app, where loans can be approved rapidly, without credit checks. The average loan amount is around 2,300 pesos (US $114).
Tala also operates in Kenya, India, and the Philippines, and Siroya noted potential plans for expansion into additional Latin American countries this year. Other notable competitors in the Mexican fintech space include Nubank from Brazil and Konfío, based in Mexico City.
In conclusion, Tala’s recent acquisition of a significant debt facility represents a pivotal moment for its expansion in Mexico, enabling increased lending capabilities and enhanced financial infrastructure. The company plans to innovate its offerings and broaden access to financial services for small business owners, positioning itself strongly within the competitive landscape of microfinancing in Latin America.
Original Source: mexiconewsdaily.com
