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Nigerian-founded, London-based fintech startup LemFi has announced the successful closure of its $53 million Series B funding round, led by Highland Europe, a prominent growth-stage investment firm. Participating investors include Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator, underscoring the company’s strong appeal to global backers.
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The latest funding brings LemFi’s total capital to $85 million, solidifying its position as a key player in the fintech space. Since its founding in 2020 by ex-OPay executives Ridwan Olalere and Rian Cochran, LemFi has rapidly scaled, now boasting over one million active users and processing an impressive $1 billion in monthly payment volume across 27 send-from markets and 20 send-to countries.
Pioneering Global Remittances
LemFi is revolutionizing the way immigrants send money internationally, offering a seamless and affordable platform for diaspora communities. Its primary focus is on emerging markets such as Nigeria, India, Kenya, Pakistan, and recently expanded to China, achieving a 30% month-on-month growth in transaction volume in the Asian corridor.
The company has a 70% retention rate among its first clients and a 60% yearly active user rate, driven by a combination of robust fraud detection systems and an excellent user experience. These metrics underscore LemFi’s ability to build trust and deliver exceptional value to its growing customer base.
Strategic Expansion Plans
LemFi plans to channel its fresh funding into:
- Scaling its Payment Network Licenses and Partnerships: Strengthening its global remittance network to enhance efficiency and reach.
- Technology and Platform Enhancement: Developing innovative solutions to meet the unique needs of immigrant communities.
- Talent Acquisition: Expanding its workforce to support the next phase of growth, building on its existing 300 employees across Europe, North America, Africa, and Asia.
The company recently entered Europe via a partnership with Modulr and acquired an Irish-licensed financial firm to streamline its regulatory framework and facilitate seamless cross-border transactions.
Impressive Financial Performance
With a projected revenue of $48 million at a 0.4% take rate on its $12 billion total payment volume (TPV), LemFi has demonstrated remarkable financial discipline and profitability potential.
Key Highlights of LemFi’s Impact
- Revolutionizing Financial Access for Immigrants: LemFi is addressing financial barriers for immigrants by offering reliable, cost-effective remittance services.
- Expanding Global Reach: With operations in major remittance corridors, including China, India, and Kenya, LemFi is bridging financial gaps in emerging markets.
- User Growth and Engagement: The platform’s user base has grown to over 1 million customers, with sustained growth in monthly transaction volumes.
- Focus on Emerging Markets: LemFi continues to prioritize affordable and efficient remittance services for underserved communities.
LemFi’s Vision for the Future
According to Ridwan Olalere, LemFi’s Co-founder, the company is committed to “transforming global remittances by empowering immigrants to send money back home seamlessly and securely.” With its innovative platform and strategic investments, LemFi is well-positioned to remain at the forefront of the fintech revolution.
Revolutioning global remittances
LemFi’s success in raising $53 million in Series B funding underscores its mission to revolutionize global remittances and provide inclusive financial solutions for immigrants. With strong financial performance, strategic partnerships, and robust expansion plans, LemFi is set to redefine the future of cross-border payments.
