PayPal-Backed Fintech startup Tala raises $110M to Expand Into India
Fintech startup Tala has raised $110 million in Series D round led by RPS Ventures. The round also saw participation from GGV Capital.
Fintech company Tala has raised $110 million in Series D funding led by RPS Ventures. The funding round was joined by GGV Capital, with participation from previous investors including IVP, Revolution Growth, Lowercase Capital, Data Collective VC, ThomVest Ventures and PayPal Ventures.
The company will use the fresh capital to expand in India, support the launch of new products centred on financial health, and grow its team across offices including its Bengaluru engineering hub. With the new round, Kabir Misra, Founding General Partner at RPS Ventures, will be part of Tala’s board of directors.
Shivani Siroya, the Indian-American Founder and CEO of Tala, spent much of her childhood in Udaipur, Rajasthan, where her family hails from, and later returned to India as a researcher with the United Nations Population Fund.
After encountering the problem of the global underbanked first-hand, Shivani founded Tala to build a financial system to help the underserved. Shivani said:-
“We are thrilled to be accelerating Tala’s growth in India, where my entrepreneurial journey began. 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. I’m excited to welcome RPS Ventures and GGV to our investor base as part of this round”
Over the past year, Tala raised an additional $100 million in debt financing, including $50 million led by Colchis Capital. It has more than 500 employees across its offices in Bengaluru, Santa Monica, Nairobi, Mexico City, and Manila.
However, venture capital dollars don’t tell the whole story. Lending is a difficult space to operate in. SoFi, for instance, has struggled to keep staff from doling out improper loans in an effort to boost their own bonuses. And aside from high-profile executive turnovers, SoFi has also struggled to meet growth goals, leading to layoffs.
Regardless, Tala raising a supergiant round puts it in a new cohort of competitors. And for those looking for accessible and quick loans, there likely has never been so many options on the table.
The US-based company offers unsecured loans via smartphone, instantly underwriting customers, and disbursing credit through an Android app. Till now, the company has disbursed loans of more than $1 billion to four million customers, with a 90 percent repayment rate.