LemFi, an innovative fintech platform committed to transforming financial services for immigrants, has recently announced a significant milestone in its ongoing efforts.
The company has successfully secured $33 million in its Series A funding round, with Left Lane Capital serving as the leading investor. LemFi has formed strategic partnerships with esteemed organizations such as Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree for this thrilling venture.
For numerous individuals, the decision of moving to an entirely new nation in search of improved opportunities is a significant undertaking, albeit one that frequently presents its own unique set of obstacles.
The primary challenge faced by immigrants in establishing themselves in their new homes is the lack of access to dependable and effective financial services. This obstacle significantly hinders their progress. LemFi was established in 2020 by Ridwan Olalere and Rian Cochran with the objective of addressing these obstacles and empowering the upcoming generation of immigrants.
Olalere and Cochran’s professional trajectories intersected during their tenure at OPay, a thriving fintech platform operating in Africa. Utilizing their extensive expertise in effectively managing cross-border payments in emerging markets, they embarked on the development of LemFi with the aim of revolutionizing the landscape for immigrants.
Olalere, the current CEO of LemFi, possesses first-hand experience as a first-generation immigrant, enabling him to empathize with the distinct challenges that immigrants encounter. He expressed, “Our vision is derived from our personal experiences of residing on various continents and managing teams with diverse backgrounds.” Our organisation is motivated by the concept of creating a global environment where financial services are readily available to all individuals. While we’ve already enhanced the lives of over half a million people, we’re only scratching the surface.”
Read also: LemFi, Pesa Swap to boost Kenya’s remittance volume
Providing prompt international transfer solution
LemFi has simplified the path to mainstream financial services for immigrants today. Users can quickly onboard with LemFi upon arriving in their new country and take advantage of its multi-currency capabilities. With LemFi, they can easily send, receive, hold, convert, and save funds in both their country of origin and their new place of residence. In addition, LemFi provides prompt international transfers with competitive exchange rates, without any charges for transfers or account upkeep.
Ridwan Olalere explained that their product is highly innovative as it effectively tackles the limitations commonly associated with traditional banks and other fintech platforms. These institutions often hesitate to engage with less common or volatile currencies. To meet their most fundamental financial obligations, immigrants have been compelled to use unreliable informal channels or a patchwork of services until now.
In the year 2020, LemFi was introduced in Canada with the primary objective of enabling affordable remittance payments to nations including Nigeria, Ghana, and Kenya. The company successfully expanded its operations to the United Kingdom in 2021 while also bolstering its services by introducing 10 additional African remittance corridors.
A major turning point for LemFi came in late 2021 when the company acquired Rightcard Payment Services of the United Kingdom. LemFi successfully obtained an Electronic Money Institution (EMI) licence from the Financial Conduct Authority (FCA) in the United Kingdom as a result of this strategic decision. The licence has enhanced the platform’s functionalities, offering users increased transaction limits, e-money accounts, and additional features.
The firm is poised for expansion with the new fund
Matthew Miller, Principal at Left Lane Capital and newly appointed member of LemFi’s Board of Directors, expressed his admiration for LemFi’s strategic approach in acquiring licenses and establishing partnerships with financial institutions, which serves as a testament to their unwavering commitment. They have the potential to create a substantial influence in cross-border payments for immigrant communities at a global level.
In the year 2023, LemFi achieved a significant milestone by obtaining an International Money Transfer Operator (IMTO) licence from the Central Bank of Nigeria. This accomplishment was made possible through its subsidiary, Rightcard Payment Services. This licence enables LemFi to establish direct collaborations with Nigerian banks, thereby eliminating intermediaries and providing users with enhanced empowerment. The Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, has recognised the alignment of LemFi with the bank’s objectives of improving the availability of foreign exchange and maintaining stability in the exchange rate.
LemFi remains dedicated to providing assistance to migrant communities on a global scale, and its mission continues to evolve. Following the successful conclusion of its most recent funding round, the company is now poised to embark on an ambitious expansion strategy targeting key markets in the United States, Europe, the Middle East, and Asia.
The fine has recently established a presence in Kenya through a strategic partnership with Pesa Swap, a reputable local provider of online and mobile payment solutions. This collaboration aims to facilitate the seamless transfer of funds into the country for the benefit of Kenyan individuals. The vision of LemFi is to consistently innovate its range of products in order to meet the changing requirements of its diverse user community.