Tala, a US microlender, secures US $150 million to expand in Mexico, focusing on enhancing lending capabilities and serving small business owners. With over 3 million clients in Mexico, Tala aims to widen access to financial services while offering competitive loan products. The company plans further expansion in Latin America beyond Mexico.
Tala, a California-based microlender, has announced plans to expand its operations in Mexico after securing a substantial debt facility of US $150 million from Neuberger Berman, a notable investment management firm based in New York. This financing is intended to support Tala’s growth within the Mexican market, highlighting the company’s commitment to providing accessible financial services.
According to Tala, the funds from this facility will be utilized to enhance its lending capabilities and continue their mission of developing scalable, data-enabled financial infrastructure. With an initial committed capital of US $75 million, the facility allows Tala to access up to US $150 million, marking the company’s largest capital markets transaction to date, indicative of its strong operational performance in Mexico.
In a recent interview, CEO and founder Shivana Siroya noted that many of Tala’s clients in Mexico are small business owners, facilitating access to essential financial resources. Tala currently serves over 3 million clients in Mexico, having issued loans exceeding US $500 million last year, thereby emphasizing its significant impact on local businesses.
Siroya elaborated that the capital accessed through this debt facility will primarily support Tala’s expansion in Mexico, focusing on widening access and enhancing product offerings. She pointed out plans for “different platforms, embedded partnerships” and improving customer value through higher credit limits and dynamic pricing for specific credit products.
Tala’s Mexico website states that the maximum loan available is 10,000 pesos (approximately US $500), while the minimum amount is 500 pesos (about US $25). Personal loan durations range from 15 to 61 days, with fixed interest rates beginning at 11%. Clients benefit from a quick application process via Tala’s mobile app, with loans often approved within minutes without credit history checks. The average loan amount in Mexico is roughly 2,300 pesos (around US $114).
Additionally, Tala operates in other countries including Kenya, India, and the Philippines, with plans for further expansion across Latin America in the near future. The competitive landscape in Mexico also includes fintech alternatives such as Brazil’s Nubank and local firm Konfío.
Tala’s recent acquisition of a US $150 million debt facility marks a significant step in the company’s expansion in Mexico, reinforcing its capability to serve small business owners and broaden access to financial resources. With strategic plans for growth and enhanced product offerings, Tala is poised to strengthen its impact in the Mexican market while continuing its operations in multiple countries. CEO Shivana Siroya’s vision of increasing accessibility and customer value positions Tala as a formidable player in the Latin American fintech landscape.
Original Source: mexiconewsdaily.com
