Nigerian-based Fintech startup, Lidya announced late March that it had raised $1.25 million in a seed funding round thereby increasing access to capital for SMEs across the nation.
The Fintech startup was launched officially on 2 November 2016 with the aim of allowing small scale enterprises secure loans without going through much stress. Lidya has its operations in Nigeria. The founders of Lidya are also the founders of African Courier Express(ACE).
Twenty thousand SMEs in the nation have registered for the service of Lidya since its official launch. Any SME can access working capital due to the fact that the startup uses over 100 different data points. These data points help the SMEs build a custom-made credit score that’s needful.
Businesses that later get qualified for the loans receive the loans under 48 hours based on capacity and ability to bear risks. Businesses that include creative industries, consumer goods, services and agriculture have utilized this platform for loan acquisitions.
“Our vision is to digitize and streamline the credit assessment process to make it easy for any SME across Africa to access the funding they needed to grow their business,” said Tunde Kehinde, co-founder of Lidya.
The funding round was led by Accion Venture Lab, the seed-stage investment initiative of Accion, financial inclusion leader, which provides support and give capital investments to innovative fintech startups that grants the undeserved more access to financial services.
“Small businesses around the world today are unable to get the financing they need to grow and thrive,” said CEO and President of Accion, Michael Schlein.
He also added, “Innovative fintech startups like Lidya are addressing this need with technology and new sources of information to help entrepreneurs obtain the necessary capital to hire employees, expand to new markets, and sustain successful businesses.”
Newid Capital and several angel investors also took part in the seed funding round.
“This round of funding and backing from our world-class group of investors is a strong validation of the potential of fintech in Africa and will position the company to be the go-to source of financing for entrepreneurs looking to grow their business.” said Lidya’s co-founder, Tunde Kehinde.