Lili, a neobank aimed at freelancers, raises $55M as it passes 200K users
A startup that has built a neobank specifically to address the needs of freelancers and sole traders has picked up a growth round to continue expanding its business after seeing its usage grow by 1,500% in a year.
Lili, which provides a way for freelancers to use a single account both to manage their work and personal financial lives, along with tools to help manage the particular financial and accounting demands that come with being a one-person business, has picked up $ 55 million in a Series B round that it will be using to continue expanding its platform.
Today the company already provides users with a single account and payment card that can be used both for personal and business expenses, and an "assistant" that analyses expenses and budget for paying future taxes based on your incomings. Down the line it will also be expanding into invoicing, payment management and credit (e.g. loans or cash advances) for its customers.
"This is about financial services for freelancers," co-founder and CEO Lilac Bar David said in an interview. "We are redefining a new kind of user, who is between a consumer and a business and has specific needs. If you look at the economy and what the future of work will look like, this really needs to be addressed."
Lili is based out of New York and Israel, and its focus is primarily on the U.S. market, where Bar David said the opportunity is big enough to keep Lili occupied for some time. It is estimated that currently 40% of workers are freelance, and that proportion is projected to rise to just over 50% of all working people by 2027.
The funding is being led by Group 11, a VC with a strong focus on fintech, with Target Global, AltaIR and previous investors also participating. (That list of past backers includes Zeev Ventures, Foundation Capital and the Google for Startups accelerator.) The company has now raised $ 80 million and is not disclosing its valuation yet.