Tala Secures $150 Million in Funding to Expand in Mexico
The U.S. fintech company Tala, which provides small loans to customers in developing markets, announced on Wednesday that it has secured a credit line of $150 million to expand its operations in Mexico.
According to founder and CEO Shivani Siroya, a large portion of Tala's users in Mexico are small business owners. The company plans to use part of this new funding to enhance and diversify its services. According to data from Mexico's statistics agency, nearly 99% of businesses in the country are classified as micro or small to medium-sized enterprises. "This capital is aimed at growing our operations in Mexico," Siroya told Reuters ahead of the announcement. "When we think about how to broaden access, we start considering different platforms and integrated partnerships." "The next question is: how do we provide more value?" she added. "Whether it's through higher credit limits, more flexible pricing, or even developing specific credit products." This credit, starting at $75 million and potentially reaching $150 million, was provided by funds managed by the U.S. investment firm Neuberger Berman, according to Tala's statement. With over 10 million users worldwide, Tala has more than 3 million users in Mexico and has issued over $500 million in loans in the country during 2024. The average loan amount from Tala in Mexico is around 2,300 pesos ($115.41). Siroya mentioned that "this year we will have more surprises" in Tala’s operations in other regions of Latin America. So far, Mexico is the only market in this area for the company, which also operates in Southeast Asia and East Africa.
Tala's move to secure this credit line reflects the growing potential of the microfinance sector in Mexico. This trend could contribute to strengthening the local economy, especially as small businesses continue to be the engine of employment and development in the country. Tala's expansion could lead to more opportunities for entrepreneurs seeking capital, though it is essential that the company maintains competitive interest rates and responsible lending practices to ensure the financial health of its clients.
