Lidya, a fintech platform based in Nigeria, closed a US$1.25m seed funding round.
The round was led by Accion Venture Lab, with participation from Newid Capital and several angel investors.
The company intends to use the funds to accelerate product development and further develop its team.
Co-founded by Tunde Kehinde and Ercin Eksin, Lidya leverages credit algorithms to allow small companies to build a credit score and access financing to grow their businesses. It currently operates in Nigeria where 20,000 businesses have registered for the service. 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.