Tala, a California-based microlender, is expanding in Mexico after securing a US $150 million debt facility from Neuberger Berman. The funding will enhance its lending capabilities as it serves over 3 million clients in Mexico. The company aims to offer higher credit limits and expand its financial products while planning further growth in Latin America.
Tala, a California-based microlender, has announced a significant expansion of its operations in Mexico after securing a debt facility amounting to US $150 million. This announcement marks an important milestone for Tala, which partners with New York’s Neuberger Berman to strengthen its financial capabilities in the region.
The facility allows Tala to access initial committed capital of US $75 million and draw up to US $150 million, the largest capital markets transaction in the company’s history. This funding will enhance Tala’s lending capabilities and support its mission to establish scalable financial infrastructure in Mexico.
According to Tala’s CEO and founder, Shivana Siroya, the company serves over 3 million clients in Mexico, predominantly small business owners. Last year, Tala disbursed loans exceeding US $500 million in the country, tailoring financial products to the distinct needs of its clientele.
In light of future growth, Siroya emphasized Tala’s goal of broadening access to financial resources through various platforms and partnerships. The company aims to provide greater value by offering higher credit limits and more dynamic pricing options to its clients.
Currently, Tala offers personal loans in Mexico ranging from 500 pesos (approximately US $25) to 10,000 pesos (around US $500), with loan durations varying from 15 to 61 days and fixed interest rates starting at 11%. Clients can conveniently apply through Tala’s mobile app, benefiting from rapid loan approvals without traditional credit history checks.
Additionally, Tala has plans for further expansion across Latin America, hinting at potential entry into more countries in the region. The company competes with other fintech providers, including Brazil’s Nubank and Mexico City-based Konfío, in providing accessible financial solutions.
In summary, Tala’s acquisition of a US $150 million debt facility signals its commitment to expanding its operations in Mexico, where it serves a significant client base, primarily small business owners. With plans to enhance its lending capabilities and introduce new financial products, Tala aims to continue its rapid growth and broaden access to financial services in the region. Future expansions across Latin America also suggest an optimistic outlook for the company.
Original Source: mexiconewsdaily.com
