Mobile payments app Lydia has raised €40 million in Series B funding led by Chinese tech company Tencent. There was also participation from existing investors such as Open CNP by CNP Assurances, XAnge and New Alpha.
The French startup will use the funding to extend the scope of its platform and expand across Europe. It has already attracted more than 3 million users in France and claims to add approximately 5,000 new users each day.
Lydia co-founder and CEO Cyril Chiche said:
“With the new funding round and a partner like Tencent, who will help us save a lot of time and avoid costly mistakes in this scaling-up phase, we have all the reasons to be very ambitious.
“We are now in a position to challenge the traditional retail banking distribution model with a mobile platform model similar to what we see in sectors like retail, music or travel.”
Lydia was launched in 2013 and has raised more than €60 million to date. The startup has recently diversified beyond peer-to-peer payments and now allows users to open accounts and obtain cards, loans, insurance and gift cards.
Ma Danying, investment director of Tencent, added:
“We’re glad to support Lydia’s vision in driving the cashless evolution in Europe. With its engaged user base and execution capability, we are confident that the company will capture the opportunities and become a European leader in mobile financial services.”