Nigerian fintech Lemfi expands to Asia with new $53m funding

• Published On: 14 January 2025 at 18:09

A Nigerian financial services platform based in London that serves immigrants With $53 million in new funding, LemFi plans to expand its operations and reach more markets around the world.

LemFi, founded in 2020 by Ridwan Olalere and Rian Cochran, has expanded rapidly by assisting diaspora communities in North America and Europe in sending money to emerging markets in Africa, Asia, and Latin America.

Over one million active users use the platform's multi-currency accounts to send money to 20 countries, including Nigeria, Kenya, India, China, and Pakistan.

LemFi had a transaction volume of more than $2 billion last year. Today, the platform processes $1 billion per month, with $160 million coming from its rapidly expanding Asian corridor, where transaction volumes are increasing 30% month on month.

LemFi recently expanded into Europe, collaborating with Modulr, an embedded finance provider. This collaboration will allow the company to begin operations until it obtains a licence in the Republic of Ireland next month. LemFi, once fully operational, will serve 27 send-from markets and 20 send-to countries.

Transaction fees and foreign exchange spreads form the basis of the company's revenue. LemFi's strong emphasis on fraud prevention has allowed it to keep costs low while offering competitive pricing. "Fraud can significantly drive up costs," Olalere said in a TechCrunch interview. "We've managed to keep our fraud rate extremely low, allowing us to offer customers the best possible prices."

LemFi's Series B funding round, led by Highland Europe, drew a lot of attention and closed in four months. Existing investors including Left Lane Capital, Palm Drive Capital, and Y Combinator, as well as new investors like Endeavour Catalyst, took part. The investment brings LemFi's total funding to $85 million.

The new funds will be used to expand LemFi's services, expand its payment network and partnerships, and hire new employees to support the company's next phase of growth. The company, which employs over 300 people across four continents, plans to provide hyper-localized services in key immigrant markets.