A fintech startup that is transforming financial services for immigrants, LemFi, has raised a $33 million Series A round led by Left Lane Capital.
The funding round also had participation from other investors, which include Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree.
Founded by Ridwan Olalere and Rian Cochran in 2020 to solve immigrants’ challenge of lack of access to financial services, LemFi, formerly known as Lemonade set out to build a platform that empowers the next generation of immigrants.
Today, with their solutions, a user can, within minutes of residency, onboard with LemFi and use its multi-currency offering to send, receive, hold, convert, and save in the currencies of both their country of origin and country of residence.
In addition, LemFi also offers instant international transfers at the best exchange rates with zero fees on transfers or account maintenance.
With the conclusion of its latest investment round, the company said it would seek 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.
Driven by experience
Co-founder and CEO of LemFi, Olalere, said he drew from his own experience as an immigrant to build the company’s services.
- “Having lived on three continents and leading a multicultural team, our mission is deeply personal: creating a world where financial services are universally accessible. We’ve already made life easier for over half a million people, but we’re only just getting started.
- “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 said.
What the investors are saying
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.”
With the investment, Miller joins LemFi’s Board of Directors as part of the transaction.
In 2020, LemFi launched in Canada to enable easy and low-cost remittance payments to Nigeria, Ghana, and Kenya.
By 2021, the company quickly expanded to the UK, and in parallel, broadened its reach by enabling 10 new African remittance corridors. In a strategic consideration, LemFi acquired UK-based Rightcard Payment Services in late 2021.
Through the acquisition, LemFi obtained an Electronic Money Institution (EMI) license from the UK’s Financial Conduct Authority to provide customers with more services, such as higher transaction limits, e-money accounts, and more.
I love this achievement of Mr Olalere, CEO of Lemfi. More wins for you and the company.
Nigerians are brainy. May God bless Nigeria.