Lydia

French neobank Lydia initially started as a peer-to-peer (P2P) payment app. The company has since branched out into other verticals in the finance space, which include checking accounts, savings accounts (in partnership with Cashbee, a French savings account fintech), and loans.

The company’s latest mobile app, called Sumeira, was launched in May 2024. It allows customers to create online accounts with interest rates and enables them to receive, spend, and manage finances anywhere in Europe. In addition, customers can also create sub-accounts, which, in turn, can be linked and shared with other accounts of other Lydia users.

Lydia is monetized on a freemium basis, with paid subscriptions ranging from EUR 4.9 to 7.9 per month. Additional features offered under paid accounts include an unlimited number of monthly payments, higher payment limits, and customizable cards, among others.

Key customers and partnerships

As of May 2024, Lydia served around 8 million customers. It claims to be the dominant mobile payment app in France, with a third of the French population aged 18–35 reported to have a Lydia account.

Furthermore, it partnered with Austrian investment platform Bitpanda in November 2021 to offer commission-free trading services in asset classes including cryptocurrencies, stocks, ETFs, and precious metals.

Funding and financials

In December 2021, Lydia raised USD 100 million in Series C funding, backed by new investors Dragoneer and Echo Street at a valuation of USD 1 billion. The fresh funds were expected to be funneled mainly toward expanding into new markets in Europe and growing its workforce, with plans to add 160 new members in 2022 alone.