LemFi, a London-based startup making financial transactions seamless and affordable for the African diaspora, has raised $53 million in a Series B funding round to bolster its global growth initiatives.
The investment, which brings the company’s total funding to $85 million, was led by Highland Europe, with contributions from existing backers Left Lane Capital, Palm Drive Capital, Y Combinator, and Endeavor Catalyst.
Founded by Ridwan Olalere and Rian Cochran in 2020, LemFi has grown fast by supporting the diaspora communities in North America and Europe, providing reliable cross-border payment services.
The platform, known for its multi-currency accounts and low-cost transfers, facilitates remittances to over 20 countries, including Nigeria, Kenya, India, and Pakistan.
This latest funding will enable LemFi to expand its payment network, acquire additional licences, and deepen its partnerships to deliver more localised services.
Plans are also underway to introduce a payment card for customers in the United States, the United Kingdom, and Canada, alongside scaling recruitment efforts for its workforce of over 300 employees.
LemFi’s monthly transaction volume has surged to $1 billion, going beyond its annual transaction volume of $2 billion in 2023. Much of this growth has been attributed to its strong adoption in Asia, where the company’s transactions in the region now amount to $160 million monthly, with a 30% month-on-month growth rate.
In recent years, LemFi has gained traction by leveraging its user-friendly interface and solid fraud prevention measures.
According to Olalere, these have allowed the platform to maintain competitive prices, ensure trust, and achieve high customer retention, with approximately 70% of its earliest users still active today.
LemFi recently partnered with Modulr, an embedded finance provider, to kickstart its European operations. To boost its presence in the region, the company has acquired a Republic of Ireland-based firm, which will provide it with independent operational capabilities beginning next month.
This expansion builds on LemFi’s strategy of entering large remittance markets. After establishing operations in the US in 2023, the platform extended its services to countries like China, India, and Pakistan in 2024.
Its ability to adapt to complex regulatory environments and integrate seamlessly with various payment systems has been key to scaling efficiently.
With over one million active users, LemFi aims to evolve into a comprehensive financial hub for immigrants globally.
The company’s mission to simplify international payments and reduce costs aligns with the needs of emerging market economies, where remittances serve as a necessary source of foreign exchange.
