Tala, a fintech startup, has secured $110 million (approx ₹788 crore) in Series D funding from clutch of investors. The platform, headquartered in California, is backed by RPS Ventures, PayPal Ventures, GGV Capital, IVP, Revolution Growth, Lowercase Capital, Data Collective VC, and ThomVest Ventures.
The platform will use the fresh funds to expand its services in India, launch new products, centered on financial health. The infused capital will also help Tala, grow its team across all its offices including its Bengaluru-engineering hub.
Adding on, post funding transfer, Kabir Misra, founding general partner at RPS Ventures, will join Tala’s board of directors.
Shivani Siroya, founder and CEO at Tala, said, “India is one of the most dynamic fintech markets in the world, and we have the product, the world-class team, and now the funding to meet the country’s massive unmet demand for equitable financial services.”
Tala was founded by Shivani Siroya in 2011 to offer consumer credit product, instantly underwriting and then disbursing loans. The average ticket size of such loans range from $10 to $500. The company also provides instant credit scoring, lending, and other personalized financial services in emerging markets.
Moreover, the company claims to have lent more than $1 Bn to 4 Mn customers, with a 90 per cent repayment rate.
According to Global Fintech Report Q1 2019, more than 1 Mn borrowers and 2 Mn lenders have transacted with lending platforms, with the overall exposure remaining at INR 350 Cr.
Besides, a 2018 BCG report says that India’s digital lending market has the potential to become a $1 Tn (INR 71 Lakh Cr) opportunity in the next five years.
Number of fintech startups that follow similar objective as Tala, include credit.com, credit karma, credit sesame, billguard, nerd wallet, among others.