LemFi Secures $53m in Series B Funding  

Remittance-focused fintech startup, LemFi, has successfully raised $53 million in a Series B funding round, marking a significant milestone in its quest to enhance global financial inclusion.

The funding round was spearheaded by London-based growth-stage investment firm Highland Europe, with participation from existing investors, including Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator. This latest capital infusion brings LemFi’s total funding to $85 million.

The funds will enable LemFi to broaden its service offerings, secure additional payment network licenses, and expand partnerships globally. The startup plans to deliver hyper-localized services and accelerate its growth by expanding into European markets. This move is bolstered by LemFi’s recent acquisition of a Republic of Ireland-based company and a strategic partnership with Modulr, allowing it to commence independent European operations next month.

Founded in 2019 by Nigerian entrepreneur, Mr. Ridwan Olalere and European co-founder, Mr. Rian Cochran, LemFi has rapidly grown its presence, serving African immigrants in 22 countries. With its new funding, the company aims to strengthen its operations across 27 send-from markets and 20 recipient countries.

LemFi’s revenue model is built on transaction fees and foreign exchange spreads, with plans to launch customer-focused products such as a card offering in the US, UK, and Canada. It is also set to invest in talent acquisition, further bolstering its 300-strong workforce spread across Europe, North America, Africa, and Asia.

The startup’s transaction volume has seen exponential growth, processing $1 billion in monthly payment volume—a significant leap from $2 billion in annual transaction volume reported in 2023. This growth is partly attributed to strong adoption in the Asian corridor, which currently accounts for $160 million in monthly transaction processing volume, growing 30% month-on-month since its launch.

LemFi’s expansion into major remittance markets like China, India, and Pakistan in 2024 has further solidified its position as a key player in the fintech space. The company also strategically hired top executives from industry leaders such as Terrapay, DeliveryHero, and OPay to support its ambitious goals.

LemFi’s co-founders, Mr. Olalere and Mr. Cochran, remain focused on bridging the financial gap for immigrants worldwide. With plans to acquire additional licenses and deepen localized services, LemFi is poised to redefine the remittance landscape, empowering more individuals and fostering financial inclusivity on a global scale.