LemFi Secures $53 Million in Series B Funding for Global Expansion
LemFi, a fintech company specializing in remittance services for African immigrants, has secured $53 million in a Series B funding round. This significant investment will facilitate the company’s planned expansion into Europe, including the acquisition of a European firm to support independent operations in the region.
The funding round was led by Highland Europe, a London-based growth-stage investment firm known for backing companies with annualized revenues exceeding €10 million. Existing investors, including Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator, also participated in the round.
With this latest round, LemFi’s total funding has reached $85 million since its inception in 2019 by co-founders Ridwan Olalere and Rian Cochran. The company has seen rapid growth, doubling its users, revenue, and transaction figures over the past two years.
LemFi’s European entry builds on a prior partnership with Modulr. However, the acquisition of a Republic of Ireland-based company, whose name remains undisclosed, will allow LemFi to operate independently in Europe starting next month. This strategic move will enable the company to secure additional licenses and form new partnerships while enhancing its offerings with localized services.
The company generates revenue through transaction fees and foreign exchange spreads across its operational footprint. Currently, LemFi processes $1 billion in monthly payment volumes, marking a significant leap from its $2 billion annual transaction volume in 2023.
A significant factor in LemFi’s success is its strong adoption in the Asian corridor, which now contributes $160 million in monthly transaction processing volume (TPV) and boasts 30% month-on-month growth since its 2023 launch. This growth underscores the company’s ability to effectively serve the remittance needs of African immigrants across various regions.
The new funding will also support the introduction of a customer card in the US, UK, and Canada, along with strategic hiring to sustain its rapid growth trajectory. This expansion will further solidify LemFi’s position as a leading remittance platform catering to African immigrants across 22 countries.
LemFi’s innovative approach to remittance services includes offering digital wallets/accounts in both the country of origin and the country of residence, providing users with a seamless way to manage their finances across borders. The company’s commitment to financial inclusion and its focus on serving the underbanked African diaspora have been key drivers of its success.
The acquisition of a European firm and the expansion into Europe will not only enhance LemFi’s operational capabilities but also provide it with a stronger foothold in the global remittance market. With its robust growth and strategic expansion plans, LemFi is poised to continue making significant strides in the fintech industry.
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