LemFi Expands to Europe, Strengthening Its Position in the Global Remittance Market
LemFi, a rapidly growing remittance startup with over 1 million customers and more than $33 million in disclosed funding, has officially launched in Europe. The company announced this expansion on Wednesday, January 8, 2025, marking a significant milestone in its journey.
“Nigerians in Europe can now send money home with LemFi,” the startup shared with customers. “Your family and friends in Europe, especially in Italy, France, and Spain, can now enjoy quick and direct transfers home at the best rates with zero transfer fees.”
Founded in 2020 by an African and a European, LemFi initially launched its operations in Canada, where it obtained the easily accessible MSB license. Nigeria, a top 10 global recipient of remittances, became its first receiver market.
In 2021, LemFi raised $725,000 in a pre-seed round and outlined plans to expand its send markets to the UK and its receive markets to Ghana.
Strategic Moves and Milestones
LemFi’s growth trajectory accelerated in 2022 when it raised a seed round in July and acquired RightCard Payment Services Limited, a UK-based e-money issuer, for $2.5 million. This acquisition allowed LemFi to issue accounts to UK customers and hold funds directly on its app through a partnership with ClearBank, a UK and European-licensed bank.
The company significantly expanded its African remittance network in February 2023, adding Senegal, Ivory Coast, Benin Republic, Cameroon, Tanzania, Rwanda, and Uganda as receive markets. Kenya was later included in June 2023, bringing LemFi’s total African destination markets to 10, including Nigeria and Ghana.
In July 2023, LemFi secured an IMTO license for inbound remittances to Nigeria and announced its entry into the US market in August 2023—a major milestone for remittance firms.
The United States represents a critical send market for remittance companies. According to a UN report on global migration, the US has been the top destination for migrants for three decades. As of 2020, immigrants made up 13% of the US population, and the country accounted for over 20% of remittances to Nigeria, making it the largest remittance source for the West African nation.
LemFi processed $2 billion in annual transaction volume in 2023, which, with a net take rate of 1%, translates to $20 million in revenue.
Looking Ahead
With its recent European expansion, LemFi continues to pursue its aggressive strategy of building a robust send-and-receive remittance network. Its innovative approach, customer-centric features, and strong partnerships position it as a leading player in the global remittance industry.
