Tala, one of the top three most popular lending apps in Kenya, has acquired an undisclosed investment round from PayPal, the most popular eCommerce payment platform globally.
In a statement, Tala said: “Tala is thrilled to announce a strategic investment from
@PayPal to further our mission to deliver financial access, choice and control to more underserved consumers around the world.”
$500 Million in Lending
Tala loans are disbursed through your Mpesa account and the minimum loan limit is Ksh 500 with a maximum of Ksh 50,000 at an interest rate of 15%.
The loan is to be paid back in weekly installments for a period of 3 weeks through Mpesa PayBill number 851900.
So far, Tala has lent out over $500 million across the different countries it operates in Kenya being one of its bigger markets. Speaking about the new investment from PayPal, Tala CEO, Shivani Siroya said:
“We see we are all very mission aligned, both Tala and PayPal. It’s been clear through the due diligence process that we share the commitment to building the financial health of the underserved.”
Today, Tala is thrilled to announce a strategic investment from @PayPal to further our mission to deliver financial access, choice and control to more underserved consumers around the world. Share this vision? Come build with us! https://t.co/1YzA5FNy74
— Tala (@talamobile) October 22, 2018
In a statement, Mark Britto, PayPal Senior VP and GM of Global Credit said:
“Tala shares our vision of re-imagining financial services, especially for the unbanked and those underserved by the traditional financial system.”
Since its split from eBay back in 2015, PayPal seems to be positioning itself by aligning with newer market entrants that seem to have an edge in the payment and remittance space.
Back in April 2018, the company partnered with Safaricom’s MPESA to offer an efficient way to pay and cash out which was positively received.
More than two-thirds of adults across the world lack a formal credit bureau record, and the new investment is a sign that PayPal is looking at the emerging markets mobile lending space and leverage the opportunity that exists in the space.