Lydia will use the funding to expand its mobile-based financial platform across Europe
Paris-based fintech Lydia has secured $86m in series B extension round led by Accel, with participation from all its major existing shareholders.
The funding takes the company’s total series B funding to $131m.
Lydia will use the new funding to expand its mobile-based digital financial services platform across Europe.
The fintech aims to capture the shift in consumer preferences towards mobile-based apps.
In addition, Lydia intends to utilise the proceeds to expand its geographic footprint. In 2020, the company is said to have laid the groundwork for international expansion with the launch in Portugal.
The fintech claims that despite economies coming to a standstill due to Covid-19 lockdowns, it added more users this year than year in its 9 year history, crossing 4 million users in this year’s fourth quarter.
Lydia’s transaction grew by 100% compared to last year
Lydia said that compared to last year, the company’s transactions grew by 100% this year, demonstrating the immense value of its network.
Users are also increasingly adopting its financial services such as its flexible debit card, money pools and direct deposit capabilities, it added.
Accel venture partner Amit Jhawar, who led the investment, will join the board of directors.
Jhawar said: “The Lydia team has solved a real customer pain point by creating experiences that are equally effective and elegant, ensuring almost 100% organic user growth. The passion of Lydia’s customers and the company’s ability to build a network without buying users has always impressed me and reminded me of Venmo.
“Lydia is a category defining verb in France just like Venmo invented mobile Peer to Peer payments in the US. As soon as I met Cyril and the rest of the Lydia team, I knew I had to find a way to invest and be part of the next stage of their journey.”