Woman-Led Tala Raises $30 Million Series B For Micro-Loans Via Smartphone
Friday, February 24, 2017
Tala, a startup that makes micro-loans to entrepreneurs in the developing world via smartphone app, has raised a $30 million Series B round as it expands into new geographical markets.
The round marks the largest Series B raised by a woman founder in recent memory; in 2016, cult beauty brand Glossier raised $24 million. This infusion of capital brings Tala’s total fundraising to over $44 million since 2012.
The five-year-old company, formerly called InVenture, allows under-banked people in emerging markets to both obtain a credit score and secure a small loan of between $10 and $500 using only an Android smartphone app.
Tala’s technology aggregates more than 10,000 data points on each customer’s phone, from financial transactions to daily movement via GPS. It then builds a customized credit score based on these habits and offers loans to those who qualify. The entire process, from app download to approval, takes about five minutes.