LemFi, a London-based financial technology platform designed to serve immigrant communities, has secured $53 million in Series B funding. The company plans to use this fresh investment to grow its customer base and expand operations across Asia and Europe, marking another milestone in its rapid global growth.
Growth Fueled by Innovation and Global Expansion
Since its launch in 2020, LemFi has become a popular choice for diaspora communities in North America and Europe looking to send money to emerging markets. The platform supports seamless remittances to over 20 countries, including Nigeria, Kenya, India, China, and Pakistan. With over 1 million active users, LemFi utilizes multi-currency accounts to make cross-border transfers more accessible and affordable.
In 2023, LemFi processed over $2 billion in annual transactions, with monthly payment volumes surpassing $1 billion. A significant portion of this growth has been driven by its expansion into the Asian corridor, where monthly payment volumes have reached $160 million, growing 30% month-on-month during its first year of operation.
Strategic Partnerships and Market Entry
As part of its European expansion, LemFi has partnered with embedded finance provider Modulr, enabling operations in 27 sending markets and 20 receiving countries. This follows its recent acquisition of a Republic of Ireland-based firm, which strengthens its footprint in Europe. The company also entered the Latin American diaspora market last year, with a focus on Brazil and Mexico, two of the largest remittance-receiving countries globally.
Remittance inflows are becoming increasingly vital for emerging markets, with a World Bank report highlighting that these flows exceeded $669 billion in 2023, often outpacing foreign direct investment as a source of foreign exchange.
Fraud Detection: A Key Differentiator
LemFi has gained significant recognition for its robust fraud detection capabilities, which have helped build trust among its users. CEO Ridwan Olalere emphasized the importance of maintaining low fraud rates to keep costs down and offer competitive pricing.
“Fraud significantly increases costs, which can lead to higher fees for customers. By keeping our fraud rate exceptionally low, we’ve been able to provide the best possible prices,” Olalere explained in an interview with TechCrunch.
This commitment to security has helped LemFi establish a strong reputation within immigrant communities. Positive user experiences and word-of-mouth referrals have been instrumental in accelerating the platform’s growth in a highly competitive market.
Backing from Investors and Future Plans
The Series B funding round, led by Highland Europe, brings LemFi’s total funding to $85 million. The London-based investment firm focuses on startups generating over €10 million in annualized revenue, highlighting the confidence investors have in LemFi’s trajectory.
With more than 300 employees across four continents, LemFi plans to use the funding to enhance its international payment services, secure additional licenses, strengthen partnerships, and provide hyper-localized services. The company also aims to recruit top talent to drive its next phase of growth.
A Vision for the Future
Olalere shared the company’s ambition to expand its services to markets with significant immigrant populations.
“While navigating regulations in various markets can be complex, our adaptable technology allows us to scale efficiently by integrating with different payment systems. Europe is our primary focus this year, but we aim to reach as many markets as possible,” he said.
As LemFi continues to innovate and expand, it is poised to play a crucial role in connecting diaspora communities with their home countries, offering secure, affordable, and efficient financial solutions.
