Business management

Lili targets independent business management with $ 55 million Series B – Crunchbase News

As more and more people become self-employed, Lili, a mobile banking service for independent Americans, is getting ahead with $ 55 million Series B funding.

Subscribe to Daily crunchbase

The New York-based company provides free banking and financial tools for freelancers and workers in the gig economy, including expense management, tax preparation, and toll-free accounts. He makes money from interchange fees every time users swipe their credit card, CEO of Lili Lilac Bar David Crunchbase News said.

New features include “Custom Tax Buckets” that allow users to set aside a certain percentage of deposits for tax payment purposes, as well as an “Emergency Bucket” so users can allocate a percentage of funds to potential emergencies.

Lili app and card

“There has been a huge adoption of Lili since the start of the global pandemic,” said Bar David. “One of the biggest challenges is taxes because they are not deducted from regular jobs. That’s why we developed the tax brackets, so it takes a certain percentage, and they still have that money aside.

“The other issue is spending and tracking,” she added. “We incorporated something like a dating experience into Lili. Every time you swipe your card, the expenses are categorized, so you swipe left or right for business expenses, and everything fills up.

Group 11 led the investment and was joined by Global target and AltaIR, along with former investors, to bring Lili’s total funding to $ 80 million since its inception in 2019, Bar David said.

Dovi Francoise, founding partner of Group 11, said in an interview that this is the third time that his company, made up of financial investors, has injected capital into Lili, and his third time at the head of the investment.

The initial investment was driven by product market fit, but this recent investment was proof that there was not only product market fit, but the company’s ability to “grow.” exponentially ”, attracting hundreds of thousands of users in two years.

“Now they can take this scale and reach millions of customers over the next two years,” added Frances. “The future of this will be much more prevalent among women, especially with COVID. Lili also caters to the needs of freelancers who don’t have time to track and itemize expenses, as well as those who need help filing taxes and issuing invoices.

Meanwhile, Bar David intends to roll out the new financing in development, including new features around billing, payments, and credit products, as well as reaching more customers.

She said the time is right for the new financing, as she expects the independent economy to reach over 50% of the population by the end of 2021. The company is currently working with 200,000 clients. in all 50 states in 30 different employment segments.

The company’s next steps will be to expand product functionality, grow the brand, and create a new product category for freelancers.

“People don’t realize how difficult it is to start a business, and we are able to define a new category,” said Bar David. “There is personal banking and business banking, but freelancers fall somewhere in between, so we are working to define that segment and target them with products and services. “

Featured photo of Liran Zelkha and Lilac Bar David and inset photo courtesy of Lili.
Blog illustration: Li-Anne Dias

Keep up to date with the latest rounds of fundraising, acquisitions and more with Crunchbase Daily.