Lemfi Raises $33 Million in Series A Funding Led by Left Lane Capital to Extend Its Remittance Services Globally, Targeting the United States, Europe, the Middle East, and Asia

Lemfi, an Africa-focused remittances platform, has recently announced a significant milestone with the successful completion of a $33 million Series A funding round. However, the round was led by Left Lane Capital, signaling strong investor confidence in Lemfi’s mission to revolutionize financial services for immigrants.

Africa-Focused Remittances Fintech Lemfi Raises $33 Million in Series A Funding Round

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It is worth noting that the company currently operates in Canada and the U.K. and plans to utilize this capital infusion to extend its product offerings to the United States, Europe, the Middle East, and Asia.

Lemfi was founded in 2020 by Ridwan Olalere and Tosin Odunsi. The company offers a mobile app that allows users to send money to friends and family in Africa at a low cost. Lemfi also offers a multi-currency account that allows users to hold and exchange multiple currencies.

Lemfi’s mission is to make remittances easier for migrants

Ridwan Olalere, co-founder and CEO of Lemfi, expressed his confidence for the funding round, describing it as an endorsement of their commitment to enhancing financial accessibility for immigrants. Having witnessed the challenges faced by migrants firsthand, Olalere emphasized how Lemfi’s services have already simplified the lives of over half a million people.

“We’ve already made life easier for over half a million people, but we’re only just getting started,” Olalere stated. He pointed out that traditional banks and even neo-banks have often been reluctant to deal with less common or more volatile currencies, leaving migrants with limited and sometimes unsafe options for sending money to their loved ones.

Lemfi’s Expansion Plans

Founded in 2020, Lemfi initially focused on enabling low-cost remittance payments to Nigeria, Ghana, and Kenya. However, the platform has since expanded significantly by adding 10 new African remittance corridors. This expansion followed Lemfi’s acquisition of the licensed U.K.-based Rightcard Payment Services in late 2021.

In October 2020, Ridwan and his cofounder Rian Cochran provided a solution with a service called Lemfi (Formerly Lemonade Finance) to ensure seamless borderless payments for Africans as more Africans decided to leave their home countries for job opportunities, education,

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Notably, Rightcard Payment Services holds an International Money Transfer Operator (IMTO) license from the Nigerian central bank, further bolstering Lemfi’s capabilities. The company also plans to invest in its technology and marketing efforts.

Olalere said that Lemfi is well-positioned to succeed in these new markets. He noted that the company has a strong team with a proven track record, offering a unique value proposition that is not currently available from other remittance providers.

As we are all well aware the remittance market in Africa is growing rapidly. In 2021, the total value of remittances sent to Africa was $48 billion. This is expected to grow to $54 billion by 2025. However, the growth of the remittance market is being driven by a number of factors, including the increasing number of Africans living abroad, the rising cost of living in Africa, and the growing use of mobile money.

Paving the Way for Secure Cross-Border Payments

Matthew Miller, Principal at Left Lane Capital, commended Lemfi for its proactive approach to building a robust network of financial institution partners to facilitate cross-border payments for immigrants. He expressed Left Lane Capital’s enthusiasm for supporting Lemfi’s future endeavors, emphasizing the company’s potential to make a lasting impact on the remittances industry.

Hence, Matthew Miller’s endorsement from Left Lane Capital underscores Lemfi’s commitment to revolutionizing remittances for immigrants. The $33 million Series A funding and global expansion plans position Lemfi to enhance its platform’s reach, making secure cross-border payments more accessible and reliable for users worldwide.