Lydia bags €70 million in an extended Series B round

Paris-based fintech startup Lydia has bagged approximately €70 million in an extension of its Series B round in December 2020. The funding round was led by Accel and all the major existing shareholders of Lydia also actively participated in it. The total amount raised in its Series B funding round now equals around €107 million, rendering it as one of the largest funding ever raised by a French fintech startup.

Proceeds from the funding round will be used by the startup to fast-track its plan to capitalize on the change in consumer preferences towards mobile-first apps with simple yet powerful digital banking and financial health competencies. The startup will also use the funds to expand its geographic footprint. In 2020, Lydia paved the way for international expansion with its efficacious launch in Portugal and expects to expand into more regions of Europe in 2021.

Founded in 2013 by Antoine Porte and Cyril Chiche, Lydia is one of the fastest-growing mobile financial services platforms in Europe and aims to become the all-in-one shop for all the financial needs of the mobile generation. It has a 30% market share among French Millennials.

Despite COVID-19, Lydia added more users in 2020 than any year in its past, accomplishing over 4 million users in early Q4. Users are also increasingly using Lydia’s wide-ranging financial services, for example, its flexible debit card, money pools and direct deposit capabilities, as the pandemic has augmented consumer demand for inherent mobile experiences that offer more understanding and control over personal finances.

CEO Cyril Chiche said, the worries of 2020 have provoked the younger, mobile generation to look for even more control and real-time visibility of their financial state of affairs. This investment will not only enable the startup to respond to its customers’ needs quicker and move into new markets but also benefit from Amit’s (Amit Jhawar is the venture partner at Accel) experience building Venmo and the Accel team’s broader experience from expeditions with some of the world’s most successful B2C companies. He concluded by saying that he believes Lydia now has precisely what it takes to become Europe’s leading financial super-app.

Amit Jhawar said, the passion of Lydia’s users and the startup’s skill to build a network without purchasing users has always impressed him and reminded him of Venmo.

He quoted, “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.”

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