Tala has secured a $150 million debt facility to expand its operations in Mexico. The funding aims to enhance lending capabilities, focusing primarily on small business owners. The company reports having over 3 million clients already in the region and plans further expansion in Latin America this year.
Tala, a California-based microlender, has announced a significant expansion in Mexico, securing a debt facility of $150 million from Neuberger Berman, a New York investment management firm. This funding will enhance Tala’s lending capabilities and help meet the growing demand for microloans in the region, according to the company’s press release.
The debt facility, which allows Tala to access $75 million initially and up to $150 million, marks the company’s largest capital markets transaction to date, showcasing its operational strength and growth in Mexico. Tala reports having over 3 million clients in Mexico, having facilitated over $500 million in loans last year.
In an interview, CEO and founder Shivana Siroya emphasized that the funds would focus on expanding their services for small business owners and enhancing customer access. She outlined plans to explore different platforms and partnerships to widen access and increase the value of their product offerings, such as higher credit limits and dynamic pricing.
Tala’s maximum loan amount in Mexico is 10,000 pesos (approximately $500), with a minimum of 500 pesos ($25). Personal loans are available for 15 to 61 days at fixed interest rates starting from 11%. The application process via Tala’s mobile app is quick, with approvals occurring in minutes, disregarding traditional credit history checks. Siroya noted that the average loan amount is around 2,300 pesos ($114).
Additionally, Tala operates in Kenya, India, and the Philippines, with Siroya indicating potential further expansions into additional Latin American countries this year. Competing fintechs in Mexico include Brazil’s Nubank and Mexico City-based Konfío, expanding the lending landscape in the region.
Tala has secured $150 million to expand its microlending operations in Mexico, marking a significant step in its growth trajectory. With a focus on enhancing lending capabilities and serving small business owners, Tala aims to widen financial access and offer improved products to millions of clients. This expansion solidifies Tala’s position in the competitive microfinance sector across Latin America, with further growth anticipated this year.
Original Source: mexiconewsdaily.com
