Nigerian digital lender Lidya has ceased operations, citing severe financial distress, according to an email sent to customers.
“Despite best efforts to restructure and sustain operations, the Company has encountered severe financial distress and is no longer able to continue in business. As a result, the Company has ceased all operations,” the company said in the notice. It added that, “Due to the Company’s financial status, it is unable to process funds or settle claims at this time.”
Founded in 2016 by former Jumia executives Tunde Kehinde and Ercin Eksin, Lidya offered fast, collateral-free loans to small and medium-sized enterprises through a digital platform powered by proprietary credit-scoring tools. At its peak, Lidya said it reviewed more than $50 billion in credit applications and disbursed over $150 million to 32,000 small businesses.
Between 2017 and 2021, the company raised approximately $16.45 million, including a $6.9 million Series A round in May 2018 led by Omidyar Network and an $8.3 million pre-Series B round in July 2021 led by Alitheia Capital’s uMunthu Fund.
In 2020, Lidya expanded into Poland and the Czech Republic as part of a European growth strategy. By 2023, it exited both markets, announcing a renewed focus on Nigeria. As part of that shift, the company introduced Lidya Collect, a loan-recovery and receivables product aimed at improving repayment rates for businesses.
Operational challenges intensified through 2024 and 2025. Some customers reported frozen funds and failed transactions, with partners alleging prolonged delays in accessing money processed via the platform. In an earlier statement to customers, the company acknowledged it was unable to release funds or settle claims due to its financial position.
The closure follows months of internal departures and restructuring. Chief Technology Officer Cristiano Machado left in September 2024, and co-founder and CEO Tunde Kehinde exited in October 2024. Reports indicated Lidya’s Portugal-based engineering team faced payroll delays starting May 2024.
Lidya initially positioned itself as a digital partner to SMEs beyond lending, offering tools such as digital accounts, invoicing, customer databases, and payment tracking to help businesses manage cash flow and collections. The company also promoted rapid loan disbursements—often within 48 hours—with repayment schedules set at onboarding.
The company’s customer email did not specify next steps for users with pending balances or the status of regulatory notifications. There was no immediate comment from the founders on the shutdown beyond the emailed statement to customers.
Lidya’s website and social channels had not, at press time, published additional information on wind-down procedures or a timeline for further communications.
Customers with questions were directed to the email notice for updates. Further details on the company’s obligations, including outstanding customer funds and claims, remain unavailable as of publication.
