LemFi, a London-based fintech platform catering to immigrants, has raised $53 million in a Series B funding round to scale its operations, expand into new markets, and enhance its remittance services. Led by Highland Europe, the funding will enable LemFi to grow its global footprint and refine its payment solutions, which have already facilitated $1 billion in monthly transaction volume across 20 countries.
Founded in 2020 by Ridwan Olalere and Rian Cochran, LemFi provides multi-currency accounts that allow users to seamlessly send money from 27 countries, including the United States, Canada, and most recently, several European markets. Its mission is to simplify cross-border payments while keeping costs low and customer satisfaction high, particularly for diaspora communities in Africa, Asia, and Latin America.
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Tackling inefficiencies in the remittance market
The remittance market, valued at over $669 billion in 2023, has been dominated by traditional banks and agents, which control 60% of the sector. LemFi aims to disrupt this space with a tech-driven approach that prioritizes affordability and security. The platform has gained popularity for its rigorous fraud detection mechanisms, which help maintain low operational costs.
“Fraud significantly increases expenses, and most companies pass that on to customers. By keeping our fraud rates low, we’re able to offer competitive prices and better experiences for our users,” Olalere explained.
This customer-first approach has fueled LemFi’s rapid growth, with 70% of its earliest users still active on the platform. Its recent expansion into Europe, facilitated by a partnership with embedded finance provider Modulr, underscores its ambition to bring tailored remittance solutions to a broader audience.
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Scaling with innovation and adaptability
LemFi’s technology-driven model has allowed it to double its user base, revenue, and transactions over the past two years. The platform’s adaptability is a key advantage as it navigates the complex regulatory environments of different markets.
“We’ve designed technology that seamlessly integrates into various payment schemes, enabling us to scale efficiently and meet the needs of immigrants wherever they are,” Olalere said.
With over 300 employees across four continents, LemFi plans to channel its new funding into acquiring more licenses, building strategic partnerships, and further enhancing its hyper-localized services.
LemFi’s latest funding round brings its total investment to $85 million, positioning the company as a major player in the remittance space. By focusing on affordability, security, and user experience, LemFi is reshaping how immigrants manage their cross-border financial needs, setting a new standard for the industry.