Tala, a U.S. microlender, has secured a $150 million debt facility to expand its operations in Mexico. The funding will enhance lending capabilities and support the company’s growth within the region, where it serves over 3 million clients. CEO Shivana Siroya highlighted plans for broader services and future expansions in Latin America.
Tala, a U.S. microlender, has revealed plans to expand its operations in Mexico following the acquisition of a $150 million debt facility. This funding, secured from the New York investment management firm Neuberger Berman, is intended to support Tala’s growth within the region. The company aims to enhance its lending capabilities and expand its data-enabled financial infrastructure.
According to Tala, this facility represents the largest capital markets transaction to date, allowing for an initial draw of $75 million. The funds will assist in reinforcing Tala’s operations and growth trajectory in Mexico, a critical market where the company serves more than 3 million clients.
Tala’s CEO, Shivana Siroya, noted that the majority of their clients are small business owners and highlighted the significant loans amounting to over $500 million provided last year. She emphasized that the capital would contribute to expanding Tala’s services and product offerings, including higher credit limits and customized credit solutions.
Currently, Tala’s loan offerings in Mexico range from 500 pesos (approximately $25) to a maximum of 10,000 pesos (around $500), with fixed interest rates starting at 11%. The loans can be easily applied for through Tala’s mobile app, allowing for approval without the need for a credit history check. The average loan amount issued in Mexico is about 2,300 pesos (equivalent to $114).
Looking ahead, Siroya indicated that Tala plans to broaden its footprint in Latin America, with potential expansions into additional countries. The company also operates in Kenya, India, and the Philippines, placing it among noteworthy fintech competitors like Nubank and Konfío in Mexico.
Tala’s announcement of a $150 million debt facility marks a significant step in the expansion of its operations in Mexico, aiming to enhance financial inclusion for small business owners. With this capital, Tala plans to offer higher loan amounts and more flexible financial products. The company’s strategy will not only improve its offerings in Mexico but also paves the way for future expansion across Latin America.
Original Source: mexiconewsdaily.com
