Market Insights

Alternative Credit and Financial Inclusion: Friday Dealbook for 8/23/2019

August 23, 2019

Inclusion is the name of the game this week: Tala, an alternative credit and microfinance provider, raised $110 million to expand into India, and Homeis, a digital platform for foreign-born communities, raised $12 million to serve immigrant communities in the US. As inclusion and identity become more viable and more recognized by the mainstream, expect investment activity in this space to continue to increase.

 

The Top Deals Covered by OWI this Week

 

Tala \ tala.co \ Founded in 2011

Developer of a mobile-based financial application designed to bring financial access, choice and control to under served people everywhere. The company’s application connects over 10,000 data points per customer to create an instant credit score of customers who have no formal credit or banking history and deliver customized financial services, enabling customers to increase their limits and lower their interest rates over time and have enhanced choice and control.

The company raised $110 million of Series D venture funding in a deal led by RPS Ventures on August 21, 2019. PayPal Ventures, PROOF Fund, GGV Capital, Lowercase Capital, Data Collective, IVP, Revolution, Thomvest Ventures and Sand Hill Angels also participated in the round.

 

INTERNAL \ internal.io \ Founded in 2015

Developer of a console as a service based privacy and compliance platform designed for employees to securely and compliantly interact with customer app data. The company’s privacy and compliance platform compliance platform offers search and filtering, auto-generated tasks and team queues, granular permissioning on every field, audit logs on every record and redacted fields for sensitive information, enabling customer-facing teams to to interact with app data while controlling access and protecting customer privacy.

The company raised $5 million of Seed funding in a deal led by Craft Ventures on August 19, 2019, putting the company’s pre-money valuation at $8.5 million. Founders Fund and other investors also participated in the round.

 

Homeis \ homeis.com \ Founded in 2019

Developer of an online community designed to connect foreign-born people with their homeland. The company’s community helps users to connect with nearby people who shares the same culture, interest and needs, enabling users to get services tailored to their unique language and cultural sensibility.

The company raised $12 million through the combination of debt and Series A venture funding in a deal led by Canaan Partners and Spark Capital on August 20, 2019, putting the company’s pre-money valuation at $17.4 million. Boston Seed Capital also invested in the round. The company intends to use the funds to serve all immigrant communities in the U.S. and across the globe, starting with Mexicans and other Latino communities in the U.S. in 2019.

 

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Investor Highlight

 

Spark Capital \ sparkcapital.com \ Founded in 2005

Description of Investor

Spark Capital is a venture capital firm that invests in startups led by creative thinkers. The firm seeks to invest in the media, software and technology sectors. It was founded in 2005 and is headquartered in Boston, Massachusetts.

Active Portfolio – 128

Investments (TTM) – 43

Med. Round Amount – $12.00M 

Med. Valuation – $47.41M

# of Exits – 79

Deal History

In the past year, Spark Capital has invested in the following 8 identity companies:

Homeis

Scale Labs

Affirm

Badi

Carta

Plaid

Handshake

BONUSCLOUD

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts