Nigeria based credit and financing startup Lydia has secured $1.25m in Series Seed funding led by Accion Venture Lab. Lidya's algorithms help small businesses build credit scores and access financing.
Lidya’s new round of funding will allow the company to accelerate product development and further develop its team. The company’s credit algorithms allow small businesses to build a credit score and access financing to grow their businesses. Lidya currently operates in Nigeria where 20,000 businesses have registered for the service. Lidya’s digital platform uses over 100 different data points to help any SME access much-needed working capital and build a customized credit score. Once a customer has been evaluated by the platform, qualified businesses receive a loan in as little as 48 hours based on their risk and capacity. Lidya has financed businesses spanning the agriculture, consumer goods, services, and creative industries, among others, and is targeting ₦1.5 billion in loan originations to SMEs in Nigeria in its first year of operations.