37. Tala
Tala provides loans, credit, insurance and bill paying to developing markets consumers who lack good access to banks, insurers and lenders
Founders: Shivani Siroya (CEO)
Launched: 2014
Headquarters: Santa Monica, California
Funding: $350 million
Valuation: $800 million
Key technologies: Artificial intelligence, machine learning
Industry: Fintech
Previous appearances on Disruptor 50 List: 4 (No. 27 in 2023)
Tala is out to disrupt legacy finance in developing markets by providing loans, credit, insurance and bill pay to consumers who lack access to banks, insurers and lenders, and who lack a financial track record.
Launched in 2014 and led by CEO Shivani Siroya, the fintech startup works with the so-called unbanked and underserved in Kenya, India, the Philippines and other emerging countries.
Last year, Tala increased its total loan volume to $5 billion across nine million people across three continents. That's up from $3.4 billion in credit dispersed to about eight million consumers the year before.
The digital lender offers micro-loans between $10 to $500 to consumers and small businesses in emerging markets through its smartphone money app. Tala checks users' phone data and their bill paying activity to create credit scores that determine the loan amount it can offer.
Last year, Tala rebuilt its AI platform using in-house proprietary data sets with the goal of expanding financial access more quickly. Credit approval processes from submission to decision now take less than three seconds.
Its reliance on AI is helping Tala move beyond lending. Using an AI chatbot, Tala customers can identify and detect fraudulent loan offers and phishing scams in real time. Moreover, with new AI tools, Tala has built customized financial services to help customers with budgeting, investing and saving.
In the face of recent rising inflation, Tala created more flexible credit options and ways to move money. The Tala Wallet was introduced last April. It quickly caught on among over one million customers to borrow and store money, pay bills, and send and receive cash instantly from their mobile phones.
Continuing to extend its presence globally, last year Tala partnered with financial service regulator CONDUSEF in Mexico to promote best practices for digital financial services. The fintech upstart also paired up with Bayad Center in the Philippines to provide convenient bill payment and became a licensed digital credit provider by the Central Bank of Kenya.
The company, which is currently profitable, has raised $350 million from PayPal Ventures, Revolution Growth, IVP and GV, with its last raise in 2021 at $145 million in a fifth round.
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This story originally appeared on: CNBC - Author:CNBC.com staff
