New York-based neobank Lili has raised $55m from a Series B funding round led by Group 11.
The round also saw participation from Target Global, AltalR as well as existing investors Foundation Capital, Zeev Ventures and the Google for Startups accelerator. To date, the company has raised $80m and has not disclosed its valuation yet.
Launched in 2020, Lili is an ‘all-in-one’ banking app designed for freelance workers. The app combines banking services with real-time expense tracking, financial insights and tax tools. The company has 200,000 customers to date, according to TechCrunch. It has locations in New York and Israel.
The firm provides its users with a single account and payment card which is available for use for both business and personal expenses, as well as an assistant that can be used to analyse expenses and budget for paying taxes in the future based on a user’s income. Going forward, Lili is eying invoicing, payment management and credit loans/cash advances as areas of expansion.
Lili claims it will be using the new funding to continue expanding its platform. The company recently estimated 40% of workers are freelance, with the number expected to hike to over 50% of working people by 2027.
Over the past year, the firm itself has seen the usage of its platform grow by 1500%. This was undoubtedly helped by a significant sea change in working conditions following the lockdown restrictions imposed by governments worldwide due to the Covid-19 pandemic.
Group 11 founding partner Dovi Frances said, “We anticipate the freelancer economy will continue to robustly grow well beyond the pandemic tailwinds. Lili is poised to see exponential growth by continuing to offer this demographic essential, effective and intuitive tools to manage what was previously an extremely complex and inefficient way of doing business.”
This recent funding round builds on the company’s two earlier rounds in 2020. In October, the company secured $15m – which came just only a matter of months after its seed round, where the firm raked in $10m.
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