Tala launched in Kenya in 2014 and last year expanded into the Philippines, Tanzania, Mexico and India. It uses mobile phone and behavioural data to provide loans ranging from USD 10 to USD 500 with the median being USD 100. Loans are usually approved within minutes and, where available, disbursed via mobile money platforms.
Analysts say that the rapid growth in smartphone use across the developing world has enabled companies like Tala and Branch to flourish.
Tala’s latest funding round comprised USD 50 million in equity investment led by Revolution Growth and existing investors, including IVP, Data Collective, Lowercase Capital, Ribbit Capital, and Female Founders Fund. The USD 15 million in debt was provided by institutional investors.
Branch, which began operations in 2015 in Kenya, has adopted a similar model. It also has operations in Tanzania and Nigeria and intends to launch in India in 2018.. Its funding round was led by Trinity Ventures. Other participants included Victory Park, International Finance Corporation, Andreessen Horowitz and CreditEase Fintech Investment Fund. Both companies have said they launched in Kenya because it has a high unbanked population and one of the most developed mobile money markets in the world.
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