Sending money across borders has long been an intricate, costly, and often frustrating process. Particularly the African diaspora remittance service, which has been largely inefficient, despite being valued at $90 billion in 2022. And although some options exist, there remain unique financial challenges that demand attention.
To cater to this demand LemFi, a Canada-based fintech platform, co-founded by Ridwan Olalere and Rian Cochran, former employees at OPay, one of Africa's most successful Fintech platforms, emerged with a mission to streamline financial transactions for immigrants and enhance the experience of sending and receiving money.
Recently securing an impressive $33 million in a Series A funding round led by Global Founders Capital and participation from Y-Combinator and others, LemFi (formerly Lemonade Finance) is poised for an ambitious expansion.
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LemFi's journey began in 2020 when it launched in Canada, providing multi-currency and affordable remittance options such as receiving, saving, and sending to countries like Nigeria, Ghana, and Kenya. Within a year, it expanded its footprint to the UK and delved deeper into more African markets.
Now with this significant investment at hand, the cross-border payment platform is gearing up to broaden its product offerings and reach immigrant communities in diverse regions, including the United States, Europe, the Middle East, and Asia.
LemFi is also making strides in its commitment to its users which is evident in its strategic acquisitions and license procurement. The company acquired UK-based Rightcard Payment Services, which granted it an Electronic Money Institution (EMI) license from the UK's Financial Conduct Authority. This license allows LemFi to provide customers with higher transaction limits and a broader range of e-money accounts and services.
Additionally, LemFi secured an IMTO (International Money Transfer Operator) license in Nigeria, enabling the direct processing of remittances to Nigerian bank accounts without intermediaries. In June 2023, LemFi expanded its services to Kenya and rebranded itself from Lemonade Finance to LemFi.
As LemFi expands its product offering to offer accessible and transparent financial services to migrant communities across the globe, it is set to build a platform that empowers the next generation of immigrants.
Lemfi previously raised $850,000 over two pre-seed rounds. This recent funding round brings its total raised to date to $33.85 million, according to data on Crunchbase.