Lili Targets Freelancer Business Management With $55M Series B – Crunchbase News

As more people become self-employed, Lili, a mobile banking service for US freelancers, is ahead of the tailwind with $ 55 million in Series B funding.

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The New York-based company provides freelancers and gig economy workers with free banking and financial tools, including expense management, tax preparation, and toll-free accounts. It makes money on interbank fees when users swipe their credit cards, Lili’s CEO Lilac Bar David told Crunchbase News.

New features include “Personalized Tax Buckets” that allow users to withhold a percentage of deposits for tax payment purposes, and an “Emergency Bucket” that allows users to allocate a percentage of funds for potential emergencies.

Lili app and card

“Since the beginning of the global pandemic, Lili has gained wide acceptance,” said Bar David. “One of the biggest challenges is taxes as they are not deducted compared to regular jobs. So we designed the tax buckets to take out a certain percentage and you always have that money aside. “

“The other pain point is spending and tracking,” she added. “We built 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 is filled in. “

Group 11 led the investment and was backed by Target Global and AltaIR, as well as previous investors, to bring Lili’s total funding to $ 80 million since its inception in 2019, Bar David said.

Dovi Frances, founding partner of Group 11, said in an interview that his firm, which is made up of financial investors, is providing Lili with capital for the third time and leading the investment for the third time.

The initial investment was driven by product market viability, but this latest investment proved that not only was product market viability, but the company’s ability to “scale exponentially” and add hundreds of thousands of users in two years.

“Now they can reach this scale and grow into millions of customers over the next two years,” added Frances. “The future of this will be far more common in women, especially with COVID. Lili also caters to the needs of freelancers who don’t have time to track and break down expenses, and need help filing taxes and issuing invoices. “

In the meantime, Bar David intends to invest the new funds in development, including new billing, payments and credit product features, as well as reaching more customers.

She said the timing for the new funding is right as she expects the freelance economy to grow to more than 50 percent of the population by the end of 2021. The company currently works with 200,000 customers in all 50 states in 30 different professional segments.

The company’s next steps include expanding product capabilities, growing the brand, and building a new product category for freelancers.

“People don’t know how hard it is to start a business and we are able to define a new category,” said Bar David. “There’s consumer banking and business banking, but freelancers are somewhere in between, so we’re working on defining this segment and addressing it with products and services.”

Feature photo of Liran Zelkha and Lilac Bar David and inserted photo courtesy of Lili.
Blogroll illustration: Li-Anne Dias

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July 17, 2021