Lili raises $10M for its freelancer banking app – TechCrunch
Lili, a startup developing banking products to meet the needs of freelance professionals, announces that it has raised $ 10 million in seed capital.
The startup takes its name from its founders, CEO Lilac Bar David and CTO Liran Zelkha, who previously founded the Israeli challenger bank Pepper. Bar David told me that while many neobanks have sprung up in recent years, most of them are “very consumer-centric”.
In a broader sense, she suggested that no traditional banking solutions are really designed to solve the problems of freelancers – whether they are designers, programmers, fitness trainers, chefs, or beauty professionals. She described Lili as the first “all-in-one” solution that offered both a bank account and a wider range of financial tracking tools.
The account comes with a Visa Business debit card and is not charged for account fees, overdraft fees, international transaction fees, or minimum balance. Bar David said Lili only makes money on card processing fees, which means “we make money whenever you make money”.
Lili also supports direct deposit and states that access to payments is possible up to two days earlier than with a conventional bank. To help freelancers manage their finances, there is a tool to track and categorize expenses, as well as another tool that transfers a percentage of income to a sub-account for taxes.
The startup estimates it can save freelancers up to 60 hours and $ 1,700 a year. (Bar David said customers may choose to use individual Lili products, but “the benefits of using the product are definitely improved when you use it as a master account.”) The company was founded in 2019 and says it already has Used by tens of thousands of clients as freelancers in all 50 US states
Bar David also suggested that the freelance economy will only grow with the economic instability caused by the COVID-19 pandemic. Millions of people are turning to freelance work either as a primary source of income or as a supplement.
The funding was led by Group 11 with the participation of Foundation Capital, AltaIR Capital, Primary Venture Partners and Torch Capital.
“Lili is redefining banking for freelancers and we are excited to be working with the team,” Group 11’s Dovi Frances said in a statement. “With the future of work moving faster than ever in these uncertain times, Lilac and Liran’s forward-looking vision is transforming the way modern workers manage their finances while saving them valuable time and money.”