FinTech News
International Payments App LemFi Raises $33 Million
A FinTech platform built for remittance payments and more has announced a new round of funding.
About the round:
This week, LemFi announced that it had raised $33 million. The Series A was led by Left Lane Capital with participation from Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree. According to LemFi, these funds will support an expansion of its product that will include the United States, Europe, the Middle East, and Asia, as well as allow them to bring new features to the service in order to meet the needs of customers.
About LemFi:
Formerly known as Lemonade Finance, LemFi is an international payments app built for immigrants. Using the app, customers can send, receive, hold, and convert multiple currencies, including those of their home country and their country of residence. Moreover, the platform offers instant transfers with zero transfer fees and competitive exchange rates.
LemFi initially launched in Canada in 2020, offering support for remittance payments to Nigeria, Ghana, and Kenya. Then, in 2021, the company expanded to the United Kingdom, while also growing its list of supported remittance countries to 10. Today, according to the LemFi site, it now offers international payments to more than 20 countries.
What they’re saying:
Commenting on the inspiration and need for LemFi, co-founder and CEO Ridwan Olalere explained, “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.”
Olalere added, “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.”
Meanwhile, Left Lane Capital principal (and, now, LemFi board of directors member) Matthew Miller said of the company, “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.”
My thoughts:
It’s really not hard to see how a product such as LemFi could really be impactful in the lives of its users. In turn, while the offering may seem niche to some, investors can clearly see the potential such a platform has. Of course, this $33 million Series A is also a win for the larger FinTech market, which has seen a major decrease in deals and has been kept afloat by early-stage rounds like this one. With big expansion plans on the horizon, LemFi is easily one to watch — especially given its new backers.
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