Women-focused fintech firm eyes $5m series A funding

Women-led startups got only 2.3% of global VC funding in 2020. While a greater share of funding went to startups run by women in 2021, the share still hovered around the 2% mark.

Singapore-based Lucy, a women-focused fintech startup, is looking to address these challenges of financing by offering personalized fintech solutions.

The company told Tech in Asia it is currently in talks with investors to raise up to US$5 million in a series A funding round.

Lucy CEO Debbie Watkins / Photo credit: Lucy

In November 2020, Lucy came into the spotlight after it raised US$365,787 in pre-seed round – in which the investors were all women.

In August 2021, the firm raised US$1 million in a seed funding round from EmergeVest, a Hong Kong-based private equity firm. It also received an undisclosed sum by way of a grant from the United Nations Capital Development Fund last year.

Even though there are miles to go before the larger problem is solved for women entrepreneurs, Lucy aims to do its bit by supporting entrepreneurial women from economically weaker sections.

The financial empowerment of women can help alleviate overall poverty, according to an HBR report. The report also notes that a working woman keeps 90% of her income aside for her family – significantly higher than the 35% that men invest into their families.

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At the same time, women-led businesses are a relatively safe bet for investors. Women-founded startups generate 78 cents for every US dollar of funding – almost 2x the average – according to a BCG report.

Over her career spanning more than two decades, Debbie Watkins, CEO and co-founder of Lucy, encountered the lack of female representation in the entrepreneurial space. Watkins has worked in more than 35 countries and advised banks and other financial institutions on how to expand their outreach programs to underserved groups.

She observed that the management of these firms was mostly male. The proportion of business loans they were providing was also skewed toward men.

To address this gender gap, Watkins co-founded Lucy with Hal Bosher, ex-CEO of Yoma Bank and head of Wave Money, and Luke Janssen, founder and ex-CEO of Tigerspike.

Serving underserved women

Watkins describes Lucy as a neobank focused on providing a tailored range of financial and non-financial services to women.

Expansion on the cards