LemFi, a remittance startup serving African immigrants, has raised $53 million in a Series B round to support its European expansion.
The round was led by Highland Europe, a London-based growth-stage investment firm that only backs startups with more than €10 million in annualized revenues. They also had follow-on investments from existing investors like Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator.
This funding will enable LemFi to acquire more licenses and partnerships as it expands its offerings to include localized services for customers. The expansion came off the back of a partnership with Modulr, but also the acquisition of an unnamed Republic of Ireland-based company. The acquisition will allow its European operations independently from next month.
LemFi is Solving Emerging Markets Remittance Problems
Remittances have emerged as a vital source of support for many emerging market economies. According to World Bank research, remittances soared to $669 billion in 2023, comprising significant proportions of GDP in numerous countries and often exceeding foreign direct investment as the primary foreign exchange source.
Legacy banks and agents maintain a firm grip on the remittance market, with over 60% market share despite fierce competition from new tech challengers. Some of these challengers vying for the remaining share include Remitly, Zepz, and Taptap Send.
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Launched in 2020 by Ridwan Olalere and Rian Cochran, LemFi has undergone rapid growth by helping diaspora communities in North America and, more recently, Europe, send money to emerging markets across Africa, Asia, and Latin America.
“While regulations market by market remain complex and we have more stakeholders to deal with, scaling has become a lot easier for us because we have technology that is adaptable and can easily plug and play to different payment methods and schemes,” Olalere told TechCrunch. “So, we intend to go to as many markets as we have significant number of immigrants, starting now with Europe this year, which is going to be a big focus for us.”
The remittance startup currently boasts over one million active users who rely on its multi-currency accounts to transfer money to friends and family in countries like Nigeria, Kenya, India, China, Pakistan, and 15 others.
Consolidating On The Growth Momentum
Olalere revealed that the firm recorded over $2 billion in annual transaction volume in 2023. Fast forward to now, and the remittance platform is processing half that — $1 billion — in monthly payment volume, Olalere told TechCrunch.
He attributes this remarkable surge to the Asian corridor’s impressive adoption rates, which have generated $160 million in monthly TPV and achieved a staggering 30% month-on-month growth within the first year of operation.
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Last week, the fintech company expanded into Europe by partnering with embedded finance provider Modulr. This partnership will allow LemFi to kickstart operations until it secures its license next month after acquiring a Republic of Ireland-based firm.
With this latest move, LemFi—whose revenue comes from transaction fees and foreign exchange spreads—now operates in 27 send-from markets and 20 send-to countries.
The company has doubled users, revenue, and transactions over the past two years, and that played a role in attracting investor interest and confidence. This growth momentum led to a Series B round led by Highland Europe, a London-based growth-stage investment firm that backs startups with more than €10M ($10.2M) in annualized revenues.
The round, which, according to Olalere, closed in just four months participation from existing investors Left Lane Capital, Palm Drive Capital, and Y Combinator and new investors like Endeavor Catalyst, bringing LemFi’s total funding to $85 million.
LemFi will use the fresh capital injection to extend its offerings, scale its payment network licenses and partnerships to provide hyper-localized services, and recruit talent for its next growth phase. The company currently has more than 300 employees across Europe, North America, Africa, and Asia.
Main Image: Ridwan Olalere and Rian Cochran, LemFi Co-founders. Image Credit: LemFi