Nigeria-based lending startup Lidya has raised $ 8.3 million in pre-Series B funding to expand its lending operations into its markets.
The funding round was led by Alitheia Capital via its uMunthu fund. Other participating investors include Bamboo Capital Partners, Accion Venture Lab and Flourish Ventures.
Speaking on the investment, Alitheia Capital Co-Founder and Managing Director Tokunboh Ishmael expressed his enthusiasm for supporting the Lidya team.
According to him, “Lidya is tackling the fundamental challenge of providing access to credit for dynamic and growing small businesses that otherwise have limited options for financing working capital to grow their businesses in Africa and Europe.”
The latest pre-Series B comes after a $ 6.9 million Series A and $ 1.3 million round of funding secured in 2017. The Nigerian fintech has now raised a total of $ 16.5 million. funding dollars.
According to the company, the new inflow of funding will be used to expand its lending operations for small and medium-sized businesses in its markets.
The fastest SME loan plug-in
Founded in 2016 by Tunde Kehinde and Ercin Eksin, Lidya is a fintech that offers financing based on the cash flow of your bank account and without collateral.
The startup presents itself as a platform for quick loans. Businesses can create accounts and apply for loans ranging from $ 500 to $ 50,000 on its platform, with decisions made within 24 hours.
Since its launch, Lidya has disbursed over 25,000 loans and claims to have a loyalty rate of over 90% of customers.
In October 2019, the company expanded its lending operations to Poland and the Czech Republic. However, it was not until March 2020 that the company’s activities fully started.
Despite the pandemic, Lidya claims to have paid more than $ 3 million to SMEs in its two new markets. Currently, the two European markets represent around 30% of the company’s disbursement volume while the overall default rate is less than 1%.
Lidya wants to consolidate its presence in all three markets with this influx of funding.
The company has also changed its management structure. Co-founder, Eksin left Lidya to pursue other projects while Kehinde takes over as sole CEO.
In addition to expanding its market, Lidya plans to expand its teams in Lagos, Prague and Warsaw and use part of the funds to support more lines of credit.
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