Cross-Border Payment Solution Provider, LemFi, has raised $33 million in series A funding to help simplify remittance payments for immigrants globally.
As reported by Tech Cabal, the round was led by Left Lane Capital and other investors including Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree. LemFi’s 33 million Series A means it has received just shy of $34 million since it was founded in 2019.
LemFi provides cross-border transactions will be at zero fees and it is instant into the digital wallet the recipient is using. African migrants in the UK, the US, and Canada can access the services through the LemFi app. Available on both the Google Play store and App Store, the app also supports the use of multiple currencies through various wallets that customers can open and deposit money in different accounts.
Every year thousands of migrants move to Europe, Canada and the United States to work, study or reside permanently. Regardless of the country they come from, immigrants face several common problems. One prominent problem is that newcomers feel worried and overwhelmed by the banking systems of their new homes. And sending money back home is a part of where they struggle.
In 2022, migrant remittances reached $626 billion globally. For many African countries, these remittances are an important source of foreign exchange. Some countries even encourage their citizens to find work overseas so they can send money back home.
The LemFi app provides a Kenyan shilling wallet setup in which customers can open and fund their accounts via mobile money. Once open, the customer can easily change their Kenya Shillings to other currencies like USD, GBP & CAD depending on their transactions.
Prior to LemFi, sending money back home meant stitching together different payment or money transfer services with fees eating up to 8% of the transaction. To receive money from home was even harder and more convoluted.