LemFi raises $33m to scale financial services for immigrants globally

LemFi, a leading fintech platform transforming financial services for immigrants, has raised $33 million in a Series A round to scale its financial services for immigrants globally. The round which was led by Left Lane Capital, saw participation from Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree.

LemFi’s CEO, Ridwan Olalere, who drew from his own experience as an immigrant, said: “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.”

The main challenge facing the millions of immigrants who relocate abroad each year to start new lives is gaining access to banking services. Founders, Ridwan Olalere and Rian Cochran teamed up in 2020 to address these issues with the goal of creating a platform that empowers the future generation of immigrants.

Olalere and Cochran first met while building OPay – one of Africa’s most successful fintech platforms. After combined decades of navigating the underlying complexities and regulatory nuances of cross-border payments in emerging markets, the two were uniquely positioned to leverage their experience as a launching pad for LemFi.

“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.”

Ridwan Olalere

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More about LemFi

In 2020, the fintech was launched in Canada to enable easy and low-cost remittance payments to Nigeria, Ghana, and Kenya. By 2021, the company had quickly expanded to the UK, and, in parallel, broadened its reach by enabling 10 new African remittance corridors.

Today, within minutes of residency, a user can 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.

In a strategic move, 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.

“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 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.”

2023 has similarly been a pivotal year for the company, with its new subsidiary, Rightcard Payment Services, securing an International Money Transfer Operator (IMTO) licence from the Central Bank of Nigeria.

The IMTO licence will enable LemFi to offer its services in partnership with Nigerian banks, empowering users by eliminating the need for intermediaries. The Acting Governor of the Central Bank, Folashodun Shonubi, recognizes the alignment of LemFi with the Central Bank’s goals of improving the availability of foreign exchange in Nigeria and ensuring exchange rate stability.

The company remains committed to offering accessible and transparent financial services to migrant communities across the globe. With the conclusion of this latest investment round, the Company will 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.