Unprofitable Tala Bets on New Loan Tech as It Expands to Five Countries
For over 10 years, microlending fintech Tala has been in business without ever turning a profit. Yet, instead of slowing down, the company is doubling down on growth. It is pushing into six new countries, betting that revamped technology and a faster expansion model will finally ..
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Tala, the microlending fintech, despite a decade of unprofitability, is aggressively expanding to five new countries, betting on new loan technology to achieve profitability by early 2026. This Silicon Valley-style growth-before-profit strategy aims to scale operations significantly.
- Tala has lent $7 billion to low-income consumers since 2011.
- The company's new underwriting system, piloted in Mexico, boosted loan approvals from 40% to 80% while reducing defaults.
- Tala plans to expand into Guatemala, the Dominican Republic, Panama, Peru, Vietnam, and India, accelerating its market entry model to three months per country.
- The company's annualized revenue run rate is currently $340 million.
- Loan default rates are approximately 10%.
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Kenyan Financial Sector Sees Branch Expansion, Fintech Growth, and Proposed Fee Reductions - September 2025
The Central Bank of Kenya (CBK) is proposing to reduce mobile money transaction fees from an average of KES 23 to KES 10 by 2028, as detailed in the National Financial Inclusion Strategy 2025–2028. On the banking front, Diamond Trust Bank (DTB) has opened a new branch in Kilimani, Nairobi, expanding its network to 90 branches in Kenya and 150 in East Africa. In the fintech sector, microlender Tala is expanding to five new countries, betting on new loan technology to achieve profitability by early 2026, despite a decade of unprofitability. The CBK's proposal aims to make financial services more accessible and affordable for Kenyans.
