Leading Nigerian fintech startup Lidya has ceased to operate after almost 10 years having failed to secure the revenues or funding needed to continue.
Launched in 2016 by Jumia alumni Tunde Kehinde and Ercin Eksin, Lidya began as a digital financial services platform focused on improving access to credit for micro, small, and medium-sized enterprises (MSMEs) in Africa.
It has since experimented with different business models, and also expanded outside of Africa, briefly having operations in Poland and the Czech Republic. But in spite of raising a total of US$16.45 million in funding, including a US$8.3 million pre-Series B round in 2021 and a US$6.9 million Series A in 2018, it is now closing down.
“Due to the company’s financial status, it is unable to process funds or settle claims at this time,” Lidya said in an email to customers.
“Despite best efforts to restructure and sustain operations, the company has encountered severe financial distress and is no longer able to continue in business. As a result, the company has ceased all operations.”
Kehinde and CTO Cristiano Machado left the company last year, while the tech team – based in Portugal – dissolved at the same time amid payroll issues.