Lidya, a Nigerian fintech platform that offers small business loans, has raised $6.9 million in Series A funding that will be used for expansion.
In a funding round led by Omidyar Network, the Silicon Valley impact investment firm established by Pierre Omidyar, the founder of eBay, the Nigerian startup secured almost $7 million in investment, according to Ventureburn.
Lidya founders Tunde Kehinde and Ercin Eksin aim to support the growth of small and medium-sized businesses with small loans through their platform which relies on innovative credit scoring algorithms.
This latest investment adds to a $1.25 seed round that was raised in March 2017, according to Techpoint.
Since its launch, Lidya says that it has provided over 1,500 loans to businesses in retail, farming, tech, hospitality, and logistics industries.
The startup was chosen to take part in the Mastercard Start Path Program, a global initiative from thec Credit card company that supports innovative startups working to provide next-generation financial solutions, according to Mastercard.
Co-founders Kehinde and Eksin said the new round of funding is a sign that their business model is on the right track.
“Lidya was founded on a simple, yet fundamental idea: technology can unleash and empower a generation of business leaders and entrepreneurs throughout Africa by revolutionizing how risk is assessed, credit is underwritten, and customers are banked,” said Kehinde, according to BizNewsAfrica.
“We are excited by the overwhelming support from the investor community, which signals a great confidence in our business model and team,” said Eksin.
Lidya will use the new funding to expand operations in Nigeria, while enabling additional launches into new markets across Africa, and hiring new staff for expanded operations.