LemFi, a Nigerian remittance platform for African immigrants, has secured $53 million in a series B funding round, that saw participation from existing investors which include; Left Lane Capital, Palm Drive Capital, and Y Combinator, and new investors like Endeavor Catalyst.
With the recent funds raised, this brings the total amount that LemFi has received to $85 million in funding since it was founded in 2019.
Recall that in 2023, the fintech startup raised $33 million in Series A funds, in a round led by Left Lane Capital, to ease remittance for immigrants. The latest funding comes after LemFi recently announced an expansion to Europe, through Modulr Finance, the leading platform for embedded payments and software-driven payment automation.
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Modular holds a European e-money issuer license from the Netherlands, enabling seamless operations across the European Economic Area (EA). This strategic partnership provides LemFi with the capability to launch in several European countries simultaneously, maximizing its reach and efficiency.
LemFi plans to use the $53 million funds to extend its offerings, scale its payment network licenses and partnerships to provide hyper-localized service and recruit talent for its next growth phase. The firm currently has more than 300 employees across Europe, North America, Africa, and Asia.
“While regulations market by market remain complex and we have more stakeholders to deal with, scaling has become a lot easier for us because we have technology that is adaptable and can easily plug and play to different payment methods and schemes. So, we intend to go to as many markets as we have a significant number of immigrants, starting now with Europe this year, which is going to be a big focus for us”, LemFi CEO and co-founder Ridwan Olalere noted.
Founded in 2020 by Ridwan Olalere and Rian Cochran, LemFi provides financial services tailored to immigrants, helping them send money to emerging markets efficiently and securely. The fintech is licensed as an Electronic Money Institution with the Financial Conduct Authority in the United Kingdom, under the name RightCard Payment Services. It is also registered as a part Money Service Business by the Financial Transactions and Report Analysis Centre, in Canada.
Findings from GlobaliData’s 2023 Financial Services Consumer Survey reveal that individuals who send money abroad to family or friends are almost four times as likely to have suffered from financial fraud compared to those who have not sent remittances. One notable aspect of LemFi’s growth strategy is its emphasis on user-centric innovations, such as multi-currency accounts and robust fraud detection systems. On its website, the startup provides users with guidance and tips about potential scams and what to look out for alongside their remittance services.
LemFi’s innovative offerings include multi-currency accounts, low transaction fees, and competitive foreign exchange rates. Its focus on affordability and user experience has garnered a loyal customer base of over one million active users.
The startup’s success reflects a commitment to innovation, customer-centricity, and strategic market entry. As it scales its operations and enters new markets, the company aims to solidify its position as a key player in the fintech industry.