At the moment, LemFi operates across 27 send-from markets and 20 send-to countries, including Nigeria, Kenya, India, China, and Pakistan.
Ridwan Olalere and Rian Cochran (Image Credits: LemFi)
LemFi announced that it has closed its Series B funding round with $53 million. Highland Europe, a growth-stage investment firm with a reputation of backing startups with annual revenues of more than €10 million, led the investment round. Existing investors like Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator, participated in the round, bringing LemFi’s total funding to $85 million.
The funding will be channeled into scaling LemFi’s operations, acquiring payment network licenses, and forging new partnerships in its efforts to provide hyper-localized financial offerings. Moreover, the investment can also be used to bolster the startup’s workforce with fresh talent, improve its technological capabilities, and accelerate its expansion into new markets as it aims to solidify its influence in North America, African, Asia, Latin America, and Europe.
Former Senior Director at Opay, Ridwan Olalere and Former Director of Finance, Rian Cochran, founded LemFi in 2020. The startup provides financial services to immigrants while also helping them send money to emerging markets securely. At the moment, LemFi operates across 27 send-from markets and 20 send-to countries, including Nigeria, Kenya, India, China, and Pakistan.
LemFi offers a wide array of innovative offerings, including multi-currency accounts, low transaction fees, and competitive foreign exchange rates. It prioritized affordability, great user experience, security – with cost-effective fraud detection strategies. Through these, the company has gathered a customer base of over one million active users.
The year 2023 saw LemFi record over $2 billion in transaction volume, a number that has continued to increase because of its strong adoption in Asia. Its Asian corridor alone rakes in $160 million in monthly transaction volume, with a month-on-month growth rate of 30%. The company boasts of more than 300 employees globally, as it charts a course for expanding its operations in Europe. LemFi recently established partnerships with firms like Modulr, and also acquired a Republic of Ireland-based firm to realize its Europe-bound ambitions.
The $53 million investment in LemFi is a testament to investors’ confidence in the company’s growth trajectory and market potential. The investment was informed by these factors below:
- Impressive Growth Metrics: LemFi has achieved significant milestones, including processing over $1 billion in monthly payment volume and recording $2 billion in annual transaction volume in 2023. Its ability to double users, revenue, and transactions over the past two years shows robust scalability and market relevance.
- Market Potential: LemFi’s global remittance flows surpassed $669 billion in 2023 as it addressed a critical need for affordable and efficient cross-border financial services.
- Competitive Differentiation: LemFi’s strong fraud detection mechanisms and user-friendly platform have built customer trust and loyalty. About 70% of its early adopters continue to use the platform, while 60% of its customer base remains active annually.
- Strong Leadership: LemFi benefits from a leadership team with a clear vision and proven execution capability in Ridwan Olalere and Rian Cochran. Their adaptability to complex regulatory environments and ability to establish strategic partnerships were key factors in securing investor confidence.
- Scalability and Adaptability: LemFi’s adaptable technology infrastructure enables seamless integration with diverse payment systems, making it well-positioned for rapid expansion into new markets. Investors likely see this scalability as a critical enabler of sustained growth.
