Lidya, Nigeria’s digital lending pioneer, shuts down
- Lidya was launched in 2016 by former Jumia executives Tunde Kehinde and Ercin Eksin.
- The company raised approximately $16.45 million between 2017 and 2021, including an $8.3 million pre-Series B funding round.
- At its peak, Lidya reviewed over $50 billion in credit applications and disbursed more than $150 million to 32,000 small businesses.
Lidya's downfall highlights the critical need for fintech companies to balance rapid growth with robust governance and sustainable financial practices. The reliance on external funding without a solid operational foundation can lead to catastrophic failures, especially in a volatile market like Africa's fintech landscape. This case should prompt industry stakeholders to reassess their strategies and prioritize long-term viability over short-term gains.
