Las Vegas — PayPal Holdings has made a strategic investment in Tala, a financial technology startup that lends to underserved consumers in emerging markets, the companies said on Monday. The companies declined to disclose the amount of the investment, but Tala said it will use the funding to further develop its product and broaden its reach. Based in Santa Monica, California, Tala lends to individuals in Kenya, Tanzania, the Philippines and Mexico through its smartphone app. The company has lent more than $500m to customers and has more than 300 employees around the world. It is among a growing cohort of new entrants in finance that take advantage of digital technologies to service individuals that have been excluded by the traditional banking sector because they were considered too risky or too unprofitable to serve. More than two-thirds of adults across the world lack a formal credit bureau record, making it challenging for traditional financial firms to lend to them, the companie...
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