Lidya, a Lagos-based lending startup, has raised $8.3 million in a pre-Series B funding round to scale its operations in Nigeria, Europe, and other markets. The funding round was led by Alitheia Capital, with participation from Bamboo Capital Partners and Accion Venture Lab.
Driving SME Growth with Innovative Credit Solutions
Founded in 2016 by former Jumia executives Tunde Kehinde and Ercin Eksin, Lidya provides small and medium-sized enterprises (SMEs) with working capital loans to fuel business growth. The startup leverages proprietary credit-scoring algorithms to assess a borrower’s creditworthiness, enabling fast and efficient disbursement of loans ranging from $150 to $50,000.
Lidya’s smart technology assigns unique credit scores to users, allowing businesses to secure loans without traditional collateral requirements. This innovation has positioned the company as a key player in bridging the SME financing gap.
Global Expansion and Milestones
Lidya’s journey has been marked by significant milestones. After raising a $1.5 million seed fund in 2017 and a $6.9 million Series A in 2018, the startup expanded into Poland and the Czech Republic in 2019. By March 2020, operations in these European markets were fully operational, contributing to over 30% of the company’s loan disbursement volume.
To date, Lidya has disbursed over 25,000 loans and boasts a 90% customer repeat rate. Its European operations alone have provided over $3 million in loans to SMEs.
CEO’s Vision for Cross-Continental Growth
Reflecting on Libya’s achievements, CEO Tunde Kehinde highlighted the company’s unique trajectory:
“We’re thrilled to have started in Nigeria and now operate in two European countries. Typically, companies expand into Nigeria from other markets, but we’ve reversed that trend. Our goal is to build the largest financial house for SMEs in our regions.”
Investors Backing SME Inclusion
The latest funding highlights the growing investor confidence in Lidya’s mission. Tokunboh Ishmael, co-founder and managing director of Alitheia Capital, said:
“Lidya addresses a critical challenge by providing access to credit for dynamic SMEs that otherwise face limited financing options. We’re proud to support a team committed to fostering growth and social impact through financial inclusion in Africa and Europe.”
A Total Funding of Over $16 Million
With this latest funding, Lidya has raised $16.45 million since its inception. The new capital will bolster its efforts to scale operations, expand its customer base, and continue providing innovative financial solutions for SMEs in Africa and Europe.
Looking Ahead
As Lidya expands its footprint, the startup reinforces its commitment to empowering small businesses with easy access to credit. With its unique approach to lending, Lidya is well-positioned to play a transformative role in SME growth across its existing and future markets.
