Tala, a U.S. microlender, obtained a US $150 million debt facility to enhance its operations in Mexico. The funds will support its growing client base, mainly small business owners. Tala looks to improve lending capabilities while expanding into other Latin American markets in the future.
Tala, a California-based microlender operating in the United States and Mexico, has recently announced the acquisition of a US $150 million debt facility aimed at enhancing its operations in Mexico. This financing, secured through Neuberger Berman, demonstrates the growth potential of Tala’s services within the Mexican market.
The company will utilize the funds to improve its lending capabilities in alignment with its mission of providing scalable and data-driven financial infrastructure. Tala stated that with an initial capital commitment of US $75 million, it now has the ability to access up to US $150 million, marking its most significant capital markets transaction to date.
Shivana Siroya, Tala’s founder and CEO, indicated during a Reuters interview that a significant portion of their clientele in Mexico consists of small business owners. Tala has accumulated over 3 million clients in the country, having disbursed loans exceeding US $500 million last year. The new capital will predominantly support the expansion of their Mexican operations.
Siroya expressed that the debt facility plays a crucial role in broadening access through various platforms and embedded partnerships. Furthermore, the company is focused on providing enhanced value, mentioning potential offerings such as higher credit limits and tailored credit products.
Currently, Tala’s service in Mexico offers loans with a minimum of 500 pesos (US $25) and a maximum of 10,000 pesos (approximately US $500), with terms ranging from 15 to 61 days and starting interest rates of 11%. The application process via Tala’s mobile app is efficient, allowing for loan approvals in minutes without requiring credit history checks.
Siroya also noted an average loan amount of about 2,300 pesos (US $114) in Mexico. Furthermore, she hinted at future developments for Tala in Latin America, suggesting possible expansions into additional countries in the region. Other notable fintech entities offering loans in Mexico include Brazil’s Nubank and Mexico City’s Konfío.
In summary, Tala’s acquisition of a US $150 million debt facility illustrates its commitment to expanding its operations in Mexico, particularly for supporting small business owners. The company aims to enhance its lending capabilities while maintaining a focus on accessibility and value for its customers. Future expansions into other Latin American countries are anticipated, positioning Tala as a significant player in the region’s financial technology landscape.
Original Source: mexiconewsdaily.com
