LemFi raises $33m in Series A round to expand product offering

Fintech platform LemFi has raised $33 million in a Series A funding round led by Left Lane Capital, as it eyes expansion of its product offering to the US, Europe, Middle East and Asia.

Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree also participated in the funding round.

LemFi, formerly Lemonade Finance, offers financial services to migrant communities and was founded in 2020 by Ridwan Olalere and Rian Cochran.

A user can onboard with LemFi within minutes of residency 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.

That same year, LemFi launched in Canada to enable easy and low-cost remittance payments to Nigeria, Ghana, and Kenya.

In 2021, the fintech entered the UK and enabled 10 new African remittance corridors.

With the proceeds from the Series A investment round, the company intends to expand its existing product offering to the US, Europe, the Middle East, and Asia, as well as work on new product offerings.

Olalere said: “Our product is a game changer for users since traditional banks and other leading neobanks 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.”

LemFi acquired UK-based Rightcard Payment Services in late 2021, through which it obtained an Electronic Money Institution (EMI) license from the Financial Conduct Authority.

“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,” said Matthew Miller, principal at Left Lane Capital, who has joined LemFi’s board of directors as part of the transaction.

“We’re excited to support LemFi as it expands its product offering to serve more immigrant communities globally.”

This year, LemFi’s new subsidiary Rightcard Payment Services has secured an International Money Transfer Operator (IMTO) license from the Central Bank of Nigeria, which will allow it to offer its services in partnership with Nigerian banks, removing the need for intermediaries.