According to Reuters, PayPal has made a strategic investment in Tala, a financial technology startup that lends to underserved consumers in emerging markets.
The companies declined to disclose the amount of the investment. But Tala said it will use the funding to further develop its product and broaden its reach.
Based in Santa Monica, California, Tala lends to individuals in Kenya, Tanzania, the Philippines, and Mexico through its smartphone app. The company has lent more than $500 million to customers and has more than 300 employees around the world.
To service its consumers, Tala analyzes device and behavioral data to underwrite them and disburse loans of between $10 and $500 on mobile wallets or other methods. More than 85 percent of customers receive a loan in less than 10 minutes.
Tala's most recent funding was in April 2018. The company raised $50 million in Series C led by Revolution Growth which brought their total amount of raised then to at least $109.4 million.
Source: Reuters