When Lidya launched in 2016, it promised to close the credit gap for small businesses in Africa with fast, technology-driven lending. Its founders, Tunde Kehinde and Ercin Eksin, both former Jumia executives, were celebrated as part of a new wave of entrepreneurs shaping Africa’s digital economy. The company attracted millions in investment, expanded beyond Nigeria into Europe, and positioned itself as a critical partner for SMEs struggling to access financing. But nearly a decade later, Lidya is facing serious operational and trust challenges. Customers claim they have been unable to access funds for months, its leadership has seen major changes, and the company has gone quiet at a time when transparency is most needed.
The Customer Complaints
For almost a year, small and medium-sized businesses using Lidya Collect, a debit mandate and loan repayment platform have reported being unable to withdraw funds from their accounts. These businesses rely on predictable cash flow, and the lack of access to their funds has created severe disruptions.
One customer told Techpoint Africa:
“We sent multiple emails since last year and received no response. Our money is stuck. We have processed millions of naira in transactions on the platform, but now that the system has failed, we have to recover debts manually. It has been a horrible few months.”
Lidya’s Background
Founded in 2016, Lidya set out to provide SMEs with easier access to credit in markets where traditional financing was difficult to obtain. Its founding team brought credibility: Kehinde had co-founded Jumia Nigeria, while Eksin had served as CEO of Jumia Nigeria and COO of Jumia Africa.
The company raised $8.3 million in Series B funding in 2020, which supported its expansion into Poland and the Czech Republic. However, by 2023, Lidya exited these European markets, citing a strategic shift to focus on Nigeria and its flagship product, Lidya Collect, a tool designed to automate loan repayments by debiting customer accounts and consolidating funds into wallets for SME access.
Leadership Changes
Signs of turbulence emerged in late 2024. Cristiano Machado, Lidya’s Chief Technology Officer, exited in September, followed by CEO and co-founder Tunde Kehinde, who stepped down in October.
In March 2025, Kehinde confirmed to a customer that he had left operational responsibilities months earlier and indicated that the board had appointed Itunu Efunkoya as CEO. Public records show Efunkoya joined Lidya in 2016 as a finance analyst and later served as financial operations manager, but the company has yet to issue a formal announcement or detailed communication on leadership changes.
Operational Challenges and Funding Gaps
Reports from former employees suggest Lidya faced liquidity challenges as early as mid-2024. The company’s engineering team, based in Portugal, allegedly went unpaid for four months, leading to a complete team resignation between May and September. According to sources, Lidya had been in advanced talks with investors for a fresh funding round, but the deal collapsed without an alternative plan.
The departure of key technical staff and the absence of new investment raise concerns about the company’s ability to maintain its infrastructure and address user complaints promptly.
Current Status and Outstanding Questions
Techpoint Africa reported that Lidya issued a brief response acknowledging awareness of the problem and stated:
“We are aware of the situation and are currently looking into it. We’re working to gather accurate information and will provide an update as soon as we’re able.”
As of now, no further updates have been provided, and businesses continue to seek clarity on when, or if, they will regain access to their funds.
This situation underscores a broader challenge for Africa’s fintech sector: while digital solutions have accelerated financial inclusion, recent events reveal the need for stronger operational resilience, better communication during crises, and regulatory mechanisms to protect customers when fintech companies face financial stress.
Techsoma Africa will continue monitoring this story and share verified updates as developments unfold.
This article was rewritten with the aid of AI
At Techsoma, we embrace AI and understand our role in providing context, driving narrative and changing culture.
