Tala Finance
Tala Finance (or Tala) is a California-based lending company. Founded by Shivani Siroya, Tala has stated that its mission is to provide financial support to those who do not have traditional access to credit or who do have a financial track record (also referred to as the "unbanked").[1][2] As of 2025, the company has raised $350 million dollars from PayPal Ventures, Revolution Growth, IVP, and GV.[3]
By 2024, the company had over 5 million customers and had disbursed over $6 billion in credit.[4]
History
[edit]Founder and CEO Shivani Siroya started the micro-finance company in 2010.[4][5] One of her goals was to reimagine traditional credit lending based on her experience studying microcredit in sub-Saharan and West African countries while working for the United Nations Population Fund.[5] After interviewing 3500 micro-entrepreneurs, Siroya concluded that these individuals needed a pathway into a formal financial system. The company developed an Android app that gives instant credit scores to users, the majority of whom are women.[1]
The company's headquarters are in Santa Monica, California.[4]
Business model
[edit]Potential clients can apply directly for personal loans using an app.[2] The company uses phone and social media data to determine risk based on activities such as phone bill payments, regular travel, and phone contacts.[3][6] A credit score is then created, and approved clients receive funds directly.[2][3] Loans tend to range from $10 to $500, with $50 being the average.[2] Tala has been criticized for granting rapid access to small amounts of funds, with critics claiming that it increases impulsive debt acquisition and charges high interest rates.[6] The repayment rate is more than 90%, although some users have reported aggressive collection tactics that have been detrimental.[1][7] The company added a wallet feature to the platform in 2017 to help customers manage their expenses.[3][8]
In 2024, Tala partnered with financial service regulator CONDUSEF in Mexico to promote best practices for digital financial services.[3] The company also paired up with Bayad Center in the Philippines to provide bill payment in the app for users and became a licensed digital credit provider by the Central Bank of Kenya.[8][9]
Social impact and awards
[edit]As of 2025, Tala has more than 10 million clients globally, including Southeast Asia and East Africa, with more than three million clients in Mexico and 3.5 million in Kenya.[10][7][9] In Mexico, women make up 50% of Tala’s lending portfolio.[11] This has been both lauded as empowering the underbanked and criticized as preying on those with less access to capital.[1][7]
In 2024, Tala, which is female-founded, was named one of the Greatest Workplaces for Women, according to Newsweek magazine.[2][12] Other accolades include: Fortune’s Impact 20 (2020), CNBC's Disruptor 50 (2024), and Forbes’ Fintech 50 list (2025).[2][13][14][4] Tala Kenya was named the Best Digital Credit Provider in Risk Management of 2025 according to Think Business.[15]
See also
[edit]References
[edit]- ^ a b c d Klich, Tanya. "The Founder Of Tala On Her Leap From Finance To Fundraising For Her Mission-Driven Startup". Forbes. Retrieved 2025-05-31.
- ^ a b c d e f www.bizjournals.com https://www.bizjournals.com/bizwomen/news/profiles-strategies/2024/09/kelly-uphoff-global-majority-tala.html. Retrieved 2025-05-04.
{{cite web}}: Missing or empty|title=(help) - ^ a b c d e staff, CNBC com (2024-05-14). "37. Tala". CNBC. Retrieved 2025-05-31.
- ^ a b c d Castellanos, Martina. "The Future Of Personal Finance: Fintech 50 2025". Forbes. Retrieved 2025-06-01.
- ^ a b Tobel, Alexa von (2024-06-06). "How the Founder of Tala Financial Platform Finds Customers". Inc. Archived from the original on 2025-04-09. Retrieved 2025-06-01.
- ^ a b Donovan, Kevin P.; Park, Emma (2019-09-20). "Perpetual Debt in the Silicon Savannah". Boston Review. Retrieved 2025-06-06.
- ^ a b c Jr, Nigel (2024-11-25). "Digital Debt Trap: Tala Hits 10 Million Users". Techspace Africa. Retrieved 2025-06-06.
- ^ a b "Bayad and Tala enter partnership, streamlines bills payment". adobo Magazine Online. 2023-09-29. Retrieved 2025-05-31.
- ^ a b "Tala shakes off the gloom associated with digital lenders". Nairobi Business Monthly. 2022-08-05. Retrieved 2025-06-06.
- ^ Madry, Kylie (March 19, 2025). "Microlender Tala lands $150 million debt facility to expand Mexico business". Reuters. Retrieved May 4, 2025.
{{cite web}}: CS1 maint: url-status (link) - ^ "Mexican Women Face 40% More Financial Strain Than Men". Mexico Business. 2024-11-14. Retrieved 2025-05-31.
- ^ "America's Greatest Workplaces for Women 2024". Newsweek. 2024-02-07. Retrieved 2025-05-04.
- ^ "Impact 20". Fortune. Retrieved 2025-05-04.
- ^ staff, CNBC com (2024-05-14). "These are the 2024 CNBC Disruptor 50 companies: See the full list of startups riding the AI wave". CNBC. Retrieved 2025-05-04.
- ^ Musalia, Wycliffe. "Tala ranks among best digital lenders in Kenya licensed by CBK". www.msn.com. Retrieved 2025-05-31.