Recently Nigerian Fintech Startup Lidya expanded its operations to the Czech Republic and Poland. Lidya is among the fast-growing lending platforms that have been offering loans to thousands of Nigerians.
The expansion to Europe is a fantastic opportunity for the startup that is seeking to provide funding to small businesses. The new operations in Prague and Warsaw come days after the company opened a new office in New York.
Nigerian fintech startup Lidya to loan $1.1 billion
The Nigerian fintech startup Lidya receives funding from VC entities Alitheia Capital and Omidyar Network. It is planning to give out close to $1.1 billion to small enterprises that do to access bank loans. According to reports in Europe are indicating that the firm could offer loans of up to $15,000. This is significantly much relative to the $3,000 that the lender offers Nigerian entrepreneurs.
Co-founder of the Nigerian fintech startup Lidya indicated that its focus is customers in the pharmaceutical, retail, and agriculture sectors. Ercin Eksin, who is one of the founders, stated that they are creating a world-class platform aimed at helping SMEs. As a result, SMEs will be able to access credit through Lidya to help them grow. Equally, he ascertained that they had proven technology that has shown that they can help businesses grow. Already in Nigeria, Lidya has assisted thousands of businesses in creating employment and wealth.
SMEs are vital in the economy because of jobs they create
Although SMEs usually face challenges regarding access to credit, Lidya is here to solve their worries. Lidya is passionately trying to expand operations globally so that they can address this growing impediment. SMEs are very vital in the economy because of the number of jobs they create and contribution to GDP. Consequently, the Nigerian fintech startup Lidya targets the creation of over 10 million jobs in emerging economies.
Global expansion for Lidya will be a gauge for the startup’s online scoring system. The system collects data to aid in making decisions faster regarding the issuance of short-term loans. Tunde Kehinde, who is another co-founder, indicated that Lidya is agnostic to business sequences.
Lidya helping SMEs in Poland where loan rejection is high
According to the Organisation for Economic Cooperation and Development loan rejection rates are high in Poland. The 2019 reports show that the most affected segment is the small and medium scale sector.
The startup’s platform allows SMEs to get online loans from as little as $500 within a day. As a result, they can build their credit history for the first time. For instance, as of July, the Nigerian fintech startup Lidya had given 10,000 loans. Interestingly in its first year, it gave loans of around $2 million, but this grew to almost $10 million in the second year. Consequently, this has made Lidya one of the largest digital lenders in Nigeria.