LemFi, a rapidly growing cross-border payment platform, officially launched in Europe on Wednesday, January 8, 2025, marking a major milestone in its history. With over 1 million users and more than $33 million in disclosed funding, the company is redefining the remittance landscape.
“Nigerians in Europe can now send money home with LemFi,” the startup shared with customers. “Your family and friends in Europe, especially in Italy, France, and Spain, can now enjoy quick and direct transfers home at the best rates with zero transfer fees.”
Read also: LemFi secures Central Bank of Kenya’s approval for remittance services
LemFi’s trajectory growth
LemFi was founded in 2020 by Rian Cochran, a European and Ridwan Olalere, a Nigerian. It began operations in Canada after obtaining the readily available MSB licence there. Its first recipient market was Nigeria, one of the top 10 countries in the world for remittances.
In 2021, LemFi announced plans to expand its sending markets to the UK and receiving markets to Ghana after raising $725,000 in a pre-seed round.
The company’s growth accelerated in 2022 following a seed round and the $2.5 million acquisition of UK-based e-money issuer RightCard Payment Services Limited. This acquisition allowed LemFi to connect with ClearBank, a UK and European-licensed bank, enabling it to offer accounts to UK consumers and store funds directly on its app.
Read also: BOG grants LemFi approval to resume operations in Ghana
LemFi’s Africa expansion
In February 2023, the business added Senegal, Ivory Coast, Benin Republic, Cameroon, Tanzania, Rwanda, and Uganda as recipient markets, greatly expanding its African remittance network.
With Kenya joining in June 2023, LemFi now serves 10 African destination markets, including Ghana and Nigeria.
A key milestone was achieved in August 2023 when LemFi debuted in the U.S. market after obtaining an IMTO license in July 2023 for incoming remittances to Nigeria. As the largest provider of remittances to Nigeria, the U.S. is a vital market for LemFi.
A United Nations report on worldwide migration claims that for the past thirty years, the United States has been the most popular destination for migrants.
In 2020, 13 percent of the US population was immigrant, and the US was the greatest provider of remittances to Nigeria, accounting for more than 20percent of all remittances to the West African country.
In 2023, LemFi processed $2 billion in transactions annually, generating $20 million in income at a 1 percent net take rate.
LemFi has recently expanded into Europe as part of its aggressive plan to establish a strong send-and-receive remittance network. It is a major force in the international remittance market thanks to its creative strategy, customer-focused features, and solid alliances.