LemFi Expands to Europe as It Builds a Global Remittance Network
LemFi, a fast-growing digital remittance startup that has raised over $60 million, has officially launched its services in Europe. The company announced the expansion on January 8, 2025, stating that Nigerians in countries like Italy, France, and Spain can now send money home using its platform with zero transfer fees and competitive exchange rates.
The European launch is facilitated through a partnership with Modulr Finance B.V., an embedded payment provider with a European e-money issuer licence. This licence enables LemFi to operate across multiple European Economic Area (EEA) countries, offering seamless remittance services to its customers.
The Global Remittance Landscape
Remittance, the process of sending money back home by migrants, is a significant economic driver. The flow of funds typically involves a sending market (where migrants reside) and a receiving market (where funds are sent). Countries in Africa, Asia, Latin America, and the Caribbean predominantly serve as receiver markets, while Europe, North America, and Oceania act as senders.
For instance, 10% of Europe’s population comprises immigrants, compared to just 1% in Africa. Over the last decade, low- and middle-income countries (LMICs) have accounted for 75% of global remittance inflows. In 2024, the World Bank estimated official remittances to LMICs at $685 billion, marking a 5.8% increase from 2023.
LemFi’s Strategic Growth and Licensing Path
Since its founding in 2020 by an African-European team, LemFi has employed a deliberate growth strategy, focusing on high-potential remittance corridors.
- Initial Markets: The company began operations in Canada as its first sending market, where it secured a Money Services Business (MSB) licence. Nigeria, a top 10 global remittance recipient, became its initial receiving market.
- Funding Milestones:
- 2021: Raised $725,000 in pre-seed funding.
- 2022: Acquired RightCard Payment Services Limited in the UK for $2.5 million, gaining an e-money issuer licence and partnering with ClearBank for account issuance.
- 2023: Raised $33 million in a Series A round and expanded to the US, the world’s largest remittance sending market.
LemFi’s aggressive market expansion has enabled it to build a robust remittance network, with over a million users and a total transaction volume of $2 billion in 2023. The startup now operates in key markets such as Canada, the US, the UK, and 10 African countries, including Nigeria, Ghana, Senegal, and Kenya.
Expanding Reach Across Europe and Asia
With its entry into Europe, LemFi extends its reach to critical sending markets, targeting the African diaspora. The company’s next phase of growth focuses on diversifying its customer base by serving the Asian diaspora in key remittance corridors such as India, China, and Pakistan.
- Strategic Focus on Asia:India, the world’s largest remittance recipient, received $129 billion in 2024, dwarfing Nigeria’s $19.8 billion. Similarly, China and Pakistan remain top destinations for global remittances. LemFi has hired talent from companies like Terrapay, Foodpanda, and OPay to drive this expansion.
- Product Expansion:LemFi plans to launch a card for users in the US, UK, and Canada, complementing its existing services and enhancing customer convenience.
Why LemFi’s Approach Works
LemFi’s success lies in addressing the common challenges faced by migrants worldwide: high transaction costs, compliance hurdles, and a lack of reliable options for cross-border payments.
“The issues faced by Africans in sending money—difficulty, high costs, and compliance barriers—are remarkably similar to those faced by migrants from other emerging markets,” said CEO Ridwan O. Akangbe.
By focusing on seamless, low-cost transactions, LemFi has positioned itself as a trusted remittance platform for underserved communities. With a strong foothold in Africa and growing influence in Europe, Asia, and North America, the company aims to become a top choice for migrants worldwide.
Future Outlook
LemFi’s expansion into Europe marks another milestone in its journey to becoming a global remittance leader. By leveraging strategic partnerships, innovative products, and a clear understanding of migrant needs, the company is poised to capture a significant share of the $685 billion remittance market.
With plans to launch new products, expand to additional markets, and strengthen its position in existing corridors, LemFi continues to redefine cross-border payments for migrants globally.