In a recent development, a remittance startup that caters to African immigrants in 22 countries has successfully secured $53 million in a Series B funding round. This funding will aid the company in expanding into the European market through the acquisition of a European firm.
The funding round was spearheaded by Highland Europe, a growth-stage investment firm based in London, with additional investment from existing backers like Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator. This brings the total funding raised by the startup to $85 million since its establishment in 2019 by its founders.
The startup’s foray into the European market was initially facilitated by a partnership with Modulr. However, with the acquisition of a company based in the Republic of Ireland, the startup is now poised to independently launch its operations in Europe starting next month. Lemfi generates revenue through transaction fees and foreign exchange spreads across its operational countries.
The newly acquired funds will enable Lemfi to obtain additional licenses and partnerships as it diversifies its services to offer localized solutions for its customers. Furthermore, the company plans to introduce a card for customers in the US, the UK, and Canada while also expanding its team to accommodate its rapid growth.
Lemfi has seen a remarkable increase in its monthly payment volume, reaching $1 billion, a substantial rise from its $2 billion annual transaction volume in 2023. The startup has experienced a doubling of users, revenue, and transactions over the past two years, with strong growth attributed to its success in the Asian market.
Since its expansion into the US in 2023, Lemfi has ventured into significant remittance markets such as China, India, and Pakistan in 2024. The company achieved this by recruiting top executives from local firms like Terrapay, DeliveryHero, and OPay.
Overall, Lemfi’s strategic acquisitions, partnerships, and rapid growth trajectory position it as a key player in the remittance industry, poised for further expansion and success.