US Fintech Startup Tala Raises $145 Million for Crypto Expansion
Riddhi Jain,
4 years ago
4 min read
Table of Contents
Introduction
Santa Monica-based financial technology firm Tala announced that it has successfully raised $145 million in a Series E capital round. The fintech intends on using the freshly raised funds to expand its borrow, save as well as money management options across the United States, the Philippines, Mexico, Kenya and India. Tala also aims to expand its cryptocurrency offerings with the capital raised. The company has now raised over $350 million in VC funding.
The funding was led by Upstart and included participation from Kindred Ventures, J Safra Group and Stellar Development Foundation. Existing investors including Revolution Growth, IVP,PayPal Ventures and Lowercase Capital also contributed to the raise.
About Tala – a US fintech giant
Founded by Shivani Siroya, Tala is a fintech firm that offers digital financial services and is focused on helping the traditionally underbanked borrow. It also disburses and underwrites loans to people (through its credit consumer app) to individuals who don’t really have a formal credit history.
The credits and loans range from as low as $10 and go up to $500. The charges levied by Tala , which is basically a one-time fee, has been kept as low as 5% for each loan. The company also said that over 90% of Tala’s customers repay their loan within 20 to 30 days. It added that most of its customers are recurring customers.
The founder and CEO of Tala, Siroya said that the California-based firm has, till date, lent more than $1 billion to millions of people. She added that during the pandemic, Tala saw the need for products apart from credit and hence, decided to go beyond it, highlighting the account experience that they’re now excited to go accelerate.
She adds that the firm is really looking to make sure that they have a safe place to more efficiently use their money, and that is what they are thinking about when it comes to cryptocurrency: how this technology can be used to really make sure that Tala supports the essential movement of money.
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Tala’s partnership with Visa
Earlier in 2021,fintech Tala teamed up with Visa (a global financial services company) and Circles (a peer-to-peer payment tech company) in order to discuss its entry into the crypto industry. The goal of the partnership was to offer underbanked individuals the facility of buying, storing and selling the USDC stable coin.
According to the terms of the collaboration, Tala is to keep the acquired USDC in its digital wallet. Users can later convert it into other cryptocurrencies or even fiat currency. In return, Visa gave its customers access to the payment provider’s credit card, which enabled them to spend the stablecoins across all the merchants that accept those cards”.
Back in the days, Siroya had praised the potential of blockchain technology that could solve problems of financial inclusion faced worldwide: Digital currencies possess tremendous potential to open financial access radically and give more control directly to underbanked and underestimated people.
Conclusion
Tala’s growth and expansion into various financial services, including its strategic partnership with Visa and Circles, demonstrate its commitment to increasing financial inclusion worldwide. With its focus on providing loans and crypto services to the underbanked, Tala is bridging gaps in the global financial system. By leveraging blockchain technology and offering affordable financial products, Tala aims to empower millions of underserved individuals, helping them access financial tools for better money management.
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FAQs
- What is Tala?
- Tala is a fintech company that provides digital financial services to underbanked populations, offering loans, savings, and money management tools.
- What is Tala’s partnership with Visa about?
- Tala has partnered with Visa and Circles to enable underbanked individuals to buy, store, and sell the USDC stablecoin, improving access to digital financial services.
- How does Tala’s loan system work?
- Tala offers loans ranging from $10 to $500 with low one-time fees and flexible repayment terms. Over 90% of customers repay within 20 to 30 days.
- What are Tala’s future plans?
- Tala plans to expand its crypto offerings and continue growing its financial services, including expanding in markets like the US, the Philippines, Mexico, Kenya, and India.
- What is the significance of Tala’s Series E funding?
- The $145 million raised in Series E funding will help Tala expand its offerings and crypto services, contributing to its mission of financial inclusion.
