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The Digest:

Nigerian digital lending startup Lidya has ceased operations after nine years, marking the end of a once-promising fintech pioneer that sought to transform SME financing in Africa. The company, founded by Jumia alumni Tunde Kehinde and Ercin Eksin, announced its closure in an email to customers, acknowledging it could no longer continue business due to severe financial challenges.

  • Lidya officially ceased all operations after nine years in business.
  • The company cited "severe financial distress" as the reason for closure.
  • Founded in 2016 by Jumia alumni Tunde Kehinde and Ercin Eksin.
  • It raised $16.5 million in total funding throughout its operation.
  • Lidya expanded to Poland and the Czech Republic in 2020 but withdrew by 2023.
  • The company faced internal collapse with executive exits and unpaid staff.
  • Customers reported frozen funds and failed transactions on its Lidya Collect platform.
This closure represents a significant setback for Nigeria's fintech ecosystem, highlighting the challenging sustainability of digital lending models in volatile economic landscapes.

Sources: Nairametrics