Lili, a neobank aimed at freelancers, raises $55M as it passes 200K users

A#nbsp;startup that has built a#nbsp;neobank specifically to#nbsp;address the needs of#nbsp;freelancers and sole traders has picked up#nbsp;a#nbsp;growth round to#nbsp;continue expanding its business after seeing its usage grow by#nbsp;1,500% in#nbsp;a#nbsp;year.

Lili, which provides a#nbsp;way for freelancers to#nbsp;use a#nbsp;single account both to#nbsp;manage their work and personal financial lives, along with tools to#nbsp;help manage the particular financial and accounting demands that come with being a#nbsp;one-person business, has picked up $#nbsp;55 million in#nbsp;a#nbsp;Series B#nbsp;round that it#nbsp;will be#nbsp;using to#nbsp;continue expanding its platform.

Today the company already provides users with a#nbsp;single account and payment card that can be#nbsp;used both for personal and business expenses, and an "assistant" that analyses expenses and budget for paying future taxes based on#nbsp;your incomings. Down the line it#nbsp;will also be#nbsp;expanding into invoicing, payment management and credit (e.g. loans or#nbsp;cash advances) for its customers.

"This is#nbsp;about financial services for freelancers," co-founder and CEO Lilac Bar David said in#nbsp;an#nbsp;interview. "We are redefining a#nbsp;new kind of#nbsp;user, who is#nbsp;between a#nbsp;consumer and a#nbsp;business and has specific needs. If#nbsp;you look at#nbsp;the economy and what the future of#nbsp;work will look like, this really needs to#nbsp;be#nbsp;addressed."

Lili is#nbsp;based out of#nbsp;New York and Israel, and its focus is#nbsp;primarily on#nbsp;the U.S. market, where Bar David said the opportunity is#nbsp;big enough to#nbsp;keep Lili occupied for some time. It#nbsp;is#nbsp;estimated that currently 40% of#nbsp;workers are freelance, and that proportion is projected to#nbsp;rise to#nbsp;just over 50% of#nbsp;all working people by#nbsp;2027.

The funding is#nbsp;being led by#nbsp;Group 11, a#nbsp;VC with a strong focus on#nbsp;fintech, with Target Global, AltaIR and previous investors also participating. (That list of#nbsp;past backers includes Zeev Ventures, Foundation Capital and the Google for Startups accelerator.) The company has now raised $#nbsp;80 million and is#nbsp;not disclosing its valuation yet.

Published by Techcrunch#nbsp;— on#nbsp;May 11, 2021