As the world deals with the COVID-19 restrictions, more and more people have turned to gig work for extra cash, or as their main income. With more people taking the freelance route, we’ve started to see the neobank revolution take off.
Israeli FinTech startup Lili, which develops digital banking products for freelancers, completed its $10 million Seed funding round. Aside from Dovi Frances’ Group 11, other notable investors were involved in Lili’s latest Seed round, such as Foundation Capital, AltaIR Capital, Primary Venture Partners, and Torch Capital.
From one digital bank to another, but now with a target crowd
No stranger to the world of neobanks, former executives at online banking app Pepper founded Lili with a growing freelancer crowd in mind. The foretelling people at Lili developed an ‘all in one’ banking solution offering a variety of different tools and services for freelancers in the U.S. Through Lili, users can open an account and receive a business debit card, though without the usual hassles of account surcharges, overdraft fees, and foreign transaction fees.
In a talk with TechCrunch, Lili CEO, Lilac Bar-David explained that the only money coming from users is from card fees, so that “it’s a win-win situation for both customers and the company.” The account also comes with digital tools for freelancers to better manage their accounts, allowing the user to catalog various expenses, as well as a tool to deduct funds for tax purposes.
Lili estimates that their service can save customers 60 hours and up to $1,700 annually. Bar-David added that she’s aware freelancers can choose to just use tools from the service, but confidently says that “the major advantages of the service come when using the product as a whole.” Founded in 2019 by former Pepper CEO, Lilac Bar-David and Lili CTO, Liran Zelkha, who was VP of R&D at Pepper. So far, the company has raised a total of $13 million.
As previously mentioned, not only has the pandemic changed professions but actually changed the way we bank. Considering not many people would want to find themselves in a crowded bank, rather choosing a service like Lili, that already proudly supports tens of thousands of customers across the states. Current Israeli Shark Tank investor, Dovi Frances, General Partner at Group 11 noted: “While the jobs of the future are rapidly evolving, Lilac and Liran’s vision changes the way workers manage their finances – saving them both money and precious time.”