Lemon secures £500K to help SMBs track their SaaS expense

By Gloria Methri

Manchester-based FinTech Lemon has raised its pre-seed funding round, securing £500K to support the business through the next stage of development. Led by SFC Capital and Pitchdrive, this backing offers more than monetary value, bringing a wealth of expertise and guidance for Lemon from the beginning of its growth journey.

In addition to the VC investment, Lemon has also received angel investment from ex-Partner of Debt Advisory at KPMG, Nick Dodd, and Co-Founder of SkyParlour Started, who both joined the Lemon advisory board.

At its core, Lemon is a platform that allows SMBs to discover, finance, and control their Software-as-a-Service (SaaS). According to the company’s research, SMBs can spend upwards of £30,000 on SaaS software each year. However, some businesses are completely unaware that their SaaS expenditure is so high.

Using Lemon, SMBs can manage their subscriptions in one place to identify overspending, gain clarity on company-wide SaaS usage, and streamline business costs, reducing average spending by 20%. Many SMBs rely on software subscriptions to increase efficiencies within their businesses through HR, marketing, and accounting programs. Through the Lemon subscription management tool, SMBs can save thousands on these software subscription expenses with zero additional work.

Following the successful raise, the FinTech will now hone in on product development, assisted by the appointment of a new Chief Technical Officer, Matt Parke, and soon a new Content & Community manager. During this development stage, the focus will be continuing to work with its early customers to tailor the product directly for the most pressing needs, optimising tools, and focusing on moving towards early product/market fit, continually working to reduce SaaS spend for SMBs.

Furthermore, Lemon will eventually increase its product functionality to include cost-saving instant credit options for SMBs, both from the Lemon dashboard and at the software vendor’s checkout.

Co-founder and CEO of Lemon Matt Bird said, “We are excited to be backed by two fantastic investment teams at SFC Capital and Pitchdrive, who not only believe in our vision and the future we want to build but bring a wealth of knowledge alongside the funding we need to continue building Lemon and ultimately support as many SMBs globally with their growth trajectory too. There’s a long road ahead, but we’re excited to be on this journey with our new investors.”