DIGITAL financial services provider Cashalo has secured a loan facility of up to $75 million from global private investment firm Community Investment Management LLC (CIM) to support its expansion in the Philippines.
The loan facility will support Cashalo’s goal to expand underserved Filipinos’ access to credit, it said in a statement on Monday.
It added that it will use the fresh funding to invest in its core business of digital lending and expand its product offerings.
“This partnership will enable us to accelerate our mission to expand financial inclusion and social mobility throughout the Philippines,” Cashalo President Luke Stidham said. “With CIM’s backing, we have an incredible opportunity to uplift even more Filipino communities by scaling our impact and ensuring more Filipinos are included in the financial system.”
“We’re proud to support Cashalo’s mission in the Philippines. Their data-driven approach, commitment to transparency, and inclusive strategy reflect the future of responsible digital lending,” Bernhard Eikenberg, CIM partner for emerging markets strategy, said.
Cashalo has a customer base of eight million and provides credit services via its mobile app. It is operated by Paloo Financing, Inc., which is registered with the Securities and Exchange Commission as a financing company.
Cashalo has granted almost five million loans to Filipinos to date, it said.
It recently marked its first anniversary as part of US-based financial technology (fintech) company Empower Finance, Inc., also rolling out a refreshed brand identity to mark its new chapter.
“In the past year, Cashalo has significantly expanded its digital lending capabilities, improving customer experiences and increasing opportunities for financial inclusion across the country,” it said.
“We look forward to continuing our investments in the Philippines to drive financial inclusion,” said Warren Hogarth, co-founder and chief executive officer of Empower Finance. “Cashalo is uniquely positioned to lead the way in delivering scalable, data-driven credit solutions that truly make a difference in people’s lives.” — A.R.A. Inosante