Quick Read: LemFi, a fintech company specializing in cross-border payments, has raised $53 million to accelerate its expansion across Asia and Europe. Since its launch in 2020, LemFi has gained over one million active users, facilitating money transfers to emerging markets. The new funding will help the company scale its services, enhance security measures, and recruit talent.
LemFi, a rapidly growing fintech company specializing in cross-border payments, has secured $53 million in new funding. This investment aims to accelerate the company’s customer acquisition and extend its reach into additional markets. Founded in 2020, LemFi has quickly become a key player in facilitating money transfers for diaspora communities in North America and Europe, with a particular focus on emerging markets in Africa, Asia, and Latin America.
Accelerating Growth with $53 Million in New Funding
LemFi’s latest funding round comes as the company looks to expand its services and solidify its position in new regions. Since its launch, the company has gained over one million active users who rely on its platform for sending money to family and friends in countries like Nigeria, Kenya, India, China, Pakistan, and 15 others. The new funds will be used to fuel further expansion and refine customer acquisition strategies across multiple countries.
Expansion into Europe and Asia
In its recent move to Europe, LemFi partnered with embedded finance provider Modulr. This collaboration enables LemFi to begin operations while awaiting regulatory approval, with plans to secure its license by next month. This is part of a broader strategy to scale the business across 27 send-from markets and 20 send-to countries.
LemFi’s rapid growth is particularly notable in Asia, where the company has seen remarkable success. Since expanding into the region last April, LemFi has witnessed a 30% month-on-month growth in transaction volume, reaching $160 million per month within its first year.
Strong User Retention and Fraud Prevention
A key factor in LemFi’s success is its commitment to security and customer satisfaction. The company’s robust fraud detection system has kept its fraud rate low, despite the fact that individuals sending money abroad are nearly four times more likely to fall victim to financial fraud. This focus on security helps keep transaction costs down, which is crucial for offering competitive rates to customers.
Around 70% of LemFi’s earliest users remain active on the platform, and 60% of its customer base continues to use the service on an annual basis. This impressive retention rate is a testament to LemFi’s strong brand, user-friendly experience, and word-of-mouth referrals.
Growth Momentum and Series B Funding
LemFi has seen significant growth, doubling its user base, revenue, and transaction volume over the past two years. This growth has garnered strong interest from investors, leading to a Series B funding round led by Highland Europe. Other participants in the round include Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator.
The Series B round, which closed in just four months, brings LemFi’s total funding to $85 million. With this financial backing, the company plans to scale its network, localize its offerings, and recruit talent to drive further expansion.
Looking Ahead: Scaling and Recruitment
LemFi intends to use its new funding to extend its product offerings, strengthen its payment network licenses, and build hyper-localized services tailored to diverse markets. The company is also focused on expanding its global team, currently comprising over 300 employees spread across Europe, North America, Africa, and Asia.
As LemFi continues its rapid expansion, the fintech company is poised to further disrupt the cross-border payments space, delivering fast, secure, and affordable money transfer services to millions of users worldwide.
