Grace Ashiru
Lemfi, a remittance startup catering to African immigrants in 22 countries, has secured $53 million in a Series B funding round to fuel its expansion into Europe through the acquisition of a European company.
The funding round was spearheaded by Highland Europe, a London-based growth-stage investment firm that exclusively supports startups generating more than €10 million in annualized revenues. Existing investors, including Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator, also participated in the round. This latest funding brings Lemfi’s total capital raised to $85 million since its establishment in 2019 by Ridwan Olalere and Rian Cochran.
Lemfi’s foray into the European market follows a prior partnership with Modulr. However, the acquisition of an unnamed company based in the Republic of Ireland will enable Lemfi to independently launch its European operations starting next month. The startup’s revenue model is built on transaction fees and foreign exchange spreads across its operational markets.
Lemfi’s recent funding will enable the startup to secure additional licenses and partnerships as it broadens its range of services, including localized offerings for its growing customer base. The company is also preparing to launch a customer card in the US, the UK, and Canada, while actively recruiting new staff to support its rapid expansion.
Currently, Lemfi is processing $1 billion in monthly payment volume, a dramatic increase compared to 2023, when it handled $2 billion annually. Over the past two years, the startup has doubled its user base, revenue, and transaction count. Co-founder Ridwan Olalere attributed this impressive growth to robust adoption in the Asian corridor, which now generates $160 million in monthly transaction payment volume (TPV) and has been growing by 30% month-on-month since its launch last year.
Following its expansion into the US in 2023, Lemfi entered major remittance markets such as China, India, and Pakistan in 2024. This move was bolstered by the strategic recruitment of C-suite executives from leading domestic companies, including Terrapay, DeliveryHero, and OPay.
