Transaction Volume Has Increased 700% This Year Due to Pandemic-Induced Growth of Freelance Economy
Lili, the all-in-one banking app designed for freelance workers, announced it has raised a $15 million funding round to accelerate growth as the American workforce is increasingly turning to freelancing during COVID-19. The round was led by Group 11, with major participation from Foundation Capital, AltaIR Capital, Primary Venture Partners, Torch Capital, and Zeev Ventures. The funding brings the total amount raised to $25 million, following the company’s seed round in June. The new capital will be used to support Lili’s rapid expansion, as growth in the freelance economy has driven a 700% increase in transaction volume since the beginning of the pandemic. The company plans to use the funds to expand its product and engineering teams and accelerate customer adoption.
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“We have been impressed with Lili’s clear product-market fit and subsequent growth”
There are nearly 60 million freelancers in the U.S. In addition, as a result of COVID-19, 12% of the US workforce started freelancing this year. This accelerated shift toward independent work has led to nearly 100,000 freelancers opening Lili accounts since its launch. Average monthly spending per customer has more than doubled in 2020.
Lili is the only company that combines banking services with real-time expense tracking, tax tools, and financial insights so freelancers can stay in control of their finances. Freelancers across dozens of industries and all 50 states have opened accounts via the iOS and Android mobile apps. Whether they’re full-time independent workers or part-time freelancers, Lili’s customers span across many industries, from e-commerce shop owners to designers, programmers, fitness instructors, construction workers, chefs, beauty professionals, and more. Lili’s customers gain free access to 38,000 ATMs across the country without a minimum balance requirement and they pay zero account, overdraft, or foreign transaction fees.
