Nigerian-London-based fintech LemFi is reshaping the way immigrants send money home, making cross-border payments faster, more affordable, and hassle-free. Building on its impressive trajectory since its founding in 2020, the company has raised $53 million in Series B funding. This fresh capital infusion is set to accelerate customer acquisition efforts, enhance its technological capabilities, and expand its operations across continents, with a strategic focus on Asia’s burgeoning remittance market.
Since its inception, LemFi has rapidly established itself as a go-to platform for diaspora communities in North America and Europe, addressing the unique financial needs of immigrants by enabling seamless fund transfers to emerging markets in Africa, Asia, and Latin America. Over the past four years, the company has consistently prioritized customer-centric innovation, offering multi-currency accounts that allow users to send money effortlessly to countries such as Nigeria, Kenya, India, China, and Pakistan.
LemFi’s growth has been nothing short of remarkable. In April 2024, co-founder Ridwan Olalere revealed that LemFi processed over $2 billion in annual transaction volume in 2023. Today, the company handles $1 billion in monthly payment volume, with $160 million coming from the Asian corridor alone. Transactions in Asia have seen a 30% month-on-month growth since the corridor’s launch, underscoring LemFi’s success in tapping into the region’s remittance market.
The company’s commitment to simplifying financial services for the diaspora is evident in its robust technology stack, which seamlessly integrates with local banking systems and mobile money platforms. This integration ensures that users can send funds directly to bank accounts, mobile wallets, or cash pickup points, offering unparalleled flexibility and convenience.
The recent Series B funding, led by Highland Europe and supported by existing investors such as Left Lane Capital, Palm Drive Capital, and Y Combinator, underscores the confidence investors have in LemFi’s vision and execution. New backers, including Endeavor Catalyst, have also joined the round, bringing LemFi’s total funding to $85 million.
Expanding European Operations and Licensing
Last week, LemFi took a significant step forward in bolstering its presence in Europe by partnering with embedded finance provider Modulr, a collaboration designed to streamline its operations and enhance service delivery in the region. This strategic alliance ensures that LemFi can continue to serve its growing European customer base seamlessly, even as it awaits regulatory licensing approval. The company is on track to secure its European license next month, a milestone that follows its acquisition of a Republic of Ireland-based financial services firm. This acquisition not only demonstrates LemFi’s commitment to regulatory compliance but also underscores its strategic focus on becoming a dominant player in the European remittance and cross-border payment market.
With this expansion, LemFi has firmly positioned itself as a global fintech leader, now operating in 27 send-from markets and 20 send-to countries. Its innovative multi-currency accounts and efficient transfer mechanisms have become a lifeline for millions of users, particularly within the diaspora communities in North America and Europe. LemFi generates substantial revenue through transaction fees and foreign exchange spreads, leveraging its advanced technology to offer competitive rates and unparalleled speed in cross-border transactions.
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LemFi’s ability to double its user base, revenue, and transaction volumes in just two years has bolstered investor confidence. The $53 million Series B funding round, led by Highland Europe, brings LemFi’s total funding to $85 million. Existing investors such as Left Lane Capital, Palm Drive Capital, and Y Combinator participated, alongside new backers like Endeavor Catalyst.
The newly raised funds will support LemFi’s plans to expand its offerings, scale payment network licenses, and partnerships, and hire additional talent for its next growth phase. Currently, the company employs over 300 staff across Europe, North America, Africa, and Asia.
Future Outlook: Navigating Regulations and Entering Asia
“Although navigating regulations across markets remains complex, our adaptable technology enables seamless integration with diverse payment methods and schemes,” said Olalere. “This year, Europe will be a key focus as we continue expanding to markets with significant immigrant populations.
With its sights set on Asia, LemFi is poised to face competition from industry heavyweights like publicly listed Remitly and private players Zepz and Taptap Send. However, LemFi’s track record of rapid growth, innovation, and adaptability positions it well to thrive in this competitive landscape.
LemFi’s mission to simplify remittances for immigrants and its relentless focus on underserved markets underlines its ambition to become a leading player in the global fintech space.
