Paris-based Lydia financial services provider has raised more than $100 million and with this, the valuation of it has crossed the $1 billion milestone. Existing investors Tencent, Founders Future and Accel led the new funding round along with Echo Street and Dragoneer. The company offers investment, credit and current account product lines.
Lydia was founded by Cyril Chiche and Antoine Porte in 2013. The company has so far raised $160 million. It has more than 5.5 million users and claims about 150K new users are added every month.
Cyril said the new round of funding is mainly financed by their existing investors. He simultaneously confirmed the significant increased valuation of Lydia compared to the previous round.
It serves across Portugal, Spain and France with the help of about 160 employees. The platform processes about 5 billion pounds annually. The active users are in the age group of 18 to 25.
According to Lydia, the new funding will help the company in maintaining accounts of 10 million users in Europe by 2025.
Lydia further stated that more 800 people will be hired in three years time period from now and it will include 160 in 2022 to expand the investment and credit offerings. Significant resources will be deployed to become a key player in the three EU countries. Very lately the company announced trading of stocks and cryptocurrencies through its platform.
The company has made significant improvements in its app to become a super app in the financial segment equipped with a wide range of products and features. It offers both physical and virtual debit cards backed by the Visa network. Users can manage their funds easily on the platform by creating a sub-account that is shareable with other users on the network.
Apart from the daily payments, the app simultaneously offers microloans at low as 100 euros to facilitate small investments. The new stock and cryptocurrency trading is partnered with Bitpanda, which offers fractional shares to small investors. With the new partnership, the app is worth taking a look at as Apple's share can be bought for as small as 10 euros capital.
The CEO added further that the company is currently experiencing a newÂ banking invention to help users manage their funds in a different way. The company is focusing on simplifying the retail banking segment and make it accessible to more people.
The company raised $45 million in its last funding in 2020. It was a Series B round and was led by Tencent.