London-based LemFi, a fintech platform targeting immigrants, has raised $53 million in fresh funding to fuel customer acquisition and expansion into new markets.
Why it matters
- Since launching in 2020, LemFi has grown rapidly, enabling diaspora communities in North America and Europe to send money to 20 emerging markets across Africa, Asia, and Latin America.
- The platform processes $1 billion in monthly transaction volume, with a particularly strong foothold in the Asian corridor, which generates $160 million in monthly payments and is growing 30% month-on-month.
By the numbers
- Global remittance inflows hit $669 billion in 2023, per World Bank data, making them a critical lifeline for many emerging market economies.
- Traditional players like banks and agents still dominate, holding over 60% of the market.
What they’re saying
“We’ve kept our fraud rate extremely low, which allows us to offer competitive prices and build trust in immigrant communities,” said LemFi CEO Ridwan Olalere. “Our user experience and reputation drive referrals, fueling faster growth in this competitive market.”
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Zoom in
- LemFi’s aggressive fraud detection measures help mitigate costs, ensuring lower fees for users.
- About 70% of its earliest customers remain loyal, with 60% of its customer base active yearly.
The big picture
- LemFi’s growth attracted a Series B round led by Highland Europe, closing in just four months and bringing its total funding to $85 million.
- The company operates in 27 send-from markets and is targeting Europe as a key growth area, leveraging partnerships like its recent collaboration with Modulr.
What’s next
LemFi plans to use the new funding to:
- Scale its payment network and licenses for localized services.
- Expand its talent pool across Europe, North America, Africa, and Asia.
- Enter new markets with significant immigrant populations.
Between the lines
LemFi’s ability to adapt its technology to local payment methods has been key to scaling in highly regulated markets.
