Fintech startup that allows users to send money to Africa in less than 10 minutes free of charge, LemFi, has raised $33 million in Series A Round to simplify remittance payments for immigrants globally.
The funding round was led by Left Lane Capital, with funds from other investors which include Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree.
With the raise of its recent fund, the company said it intends to expand its product offering to the United States, Europe, the Middle East, and Asia, as well as innovate new product offerings according to the needs of its users.
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LemFi’s CEO Ridwan Olalere drew from his own experience as an immigrant and said, having lived on three continents and leading a multicultural team, the company’s mission is deeply personal, creating a world where financial services are universally accessible.
“Our product is a game changer for users since traditional banks and other leading neo-banks have always steered clear of less common or more volatile currencies. This has driven immigrants to often use unsafe, informal channels or to stitch together several other services to solve some of their basic financial needs. Until now”, he added.
Speaking on what motivated the investment in LemFi, Principal at Left Lane Capital, Matthew Miller, said,
“LemFi has been very deliberate and strategic in acquiring licenses and building a robust network of financial institution partners to facilitate cross-border payments for immigrants. We’re excited to support LemFi as it expands its product offering to serve more immigrant communities globally.”
LemFi is set to build a platform that empowers the next generation of immigrants. With its product offerings, users can send, receive, hold, and save money in the currencies of their country of origin and residence.
The company understands that the African diaspora has financial service needs that are either unmet or met inefficiently.
Some of these needs range from high and hidden transfer fees for international remittance back to the limited ability to access and manage affordable credit products and bank accounts domiciled in their home country.
Founded in 2020, LemFi launched in Canada where it offered instant international transfer to the African diaspora community in Canada.
From Canada, the startup grew quickly, and by 2021, it had expanded to the UK. At the same time, the company was working to add more African countries where users could send money to or from. By the end of 2021, it has added 10 new African remittance corridors.
LemFi’s mission is to make life easier for Africans abroad by providing borderless financial services that allow them to truly participate in the global economy wherever they are in the world.