Tala Expands Operations in Mexico with US $150 Million Debt Facility

Tala, a US microlender, has secured a US $150 million debt facility to expand its operations in Mexico. With over 3 million clients primarily consisting of small business owners, Tala aims to enhance its lending capabilities. The company offers loans between 500 pesos and 10,000 pesos, boasting quick approval through its mobile app. CEO Shivana Siroya indicates potential further expansion in Latin America.

Tala, a California-based microlending company, has announced plans to expand its operations in Mexico following the acquisition of a US $150 million debt facility from Neuberger Berman, a New York-based investment management firm. This financing will bolster Tala’s initiatives aimed at enhancing its lending capabilities in Mexico, as stated in a recent press release. The company highlighted that this represents its largest capital markets transaction to date and reaffirms its growth trajectory in the region.

Tala’s founder and CEO, Shivana Siroya, revealed in a Reuters interview that over three million clients in Mexico are predominantly small business owners. Last year, Tala disbursed more than US $500 million in loans to these clients. The newly secured capital will primarily support business growth within Mexico, focusing on widening access through different platforms and offering increased value through various financial products.

Currently, Tala’s loan offerings range from 500 pesos (approximately US $25) to a maximum of 10,000 pesos (around US $500), with terms from 15 to 61 days and fixed interest rates starting at 11%. Through its mobile application, Tala is able to approve loans in minutes without requiring a credit history check; the average loan amount in Mexico is reported to be about 2,300 pesos (US $114).

Tala also operates in Kenya, India, and the Philippines. Siroya hinted that more developments are planned for Latin America, suggesting further expansion into other countries within the region. Competitors in the Mexican fintech landscape include Brazil’s Nubank and Mexico City-based Konfío.

In conclusion, Tala’s recent acquisition of a US $150 million debt facility marks a significant step toward expanding its services in Mexico, capitalizing on the strong demand for microlending among small business owners. The company’s strategic plans not only aim to enhance lending capabilities but also to broaden access to financial services through innovative platforms. With plans for further regional growth, Tala is poised to play an increasingly vital role in the Latin American fintech landscape.

Original Source: mexiconewsdaily.com