African remittance startup Lemfi has raised $53 million in a Series B round to support its expansion into Europe through the acquisition of a European firm. The round was led by Highland Europe, a London-based growth-stage investment firm, with follow-on investment from existing investors Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator.

This funding brings the total amount raised by Lemfi to $85 million since its founding in 2019 by Ridwan Olalere and Rian Cochran. The startup has been making significant strides in the remittance space, processing $1 billion in monthly payment volume, a significant jump from 2023 when it processed $2 billion in annual transaction volume.

Lemfi's expansion into Europe came off the back of a partnership with Modulr, but its acquisition of an unnamed Republic of Ireland-based company will allow it to begin its European operations independently from next month. The startup makes money from transaction fees and foreign exchange spreads across the countries it is present in.

The funding will allow Lemfi to acquire more licenses and partnerships as it expands its offerings to include localized services for customers. The startup is set to launch a card for customers in the US, the UK, and Canada, and will also hire staff as it continues to grow rapidly. Lemfi has doubled users, revenue, and transactions over the past two years, crediting strong adoption in the Asian corridor, which rakes in $160 million in monthly TPV and is growing 30% month-on-month since it launched last year.

After expanding into the US in 2023, the startup entered large remittance markets like China, India, and Pakistan in 2024. It entered these markets by poaching C-suite executives from domestic companies like Terrapay, DeliveryHero, and OPay. With this new funding, Lemfi is poised to become a major player in the global remittance market, providing localized services to customers across 22 countries.

The remittance industry has seen significant growth in recent years, driven by the increasing demand for digital payment solutions. Lemfi's expansion into Europe marks a significant milestone in the company's growth trajectory, and its focus on localized services is likely to resonate with customers in the region. As the startup continues to grow, it will be interesting to see how it navigates the complex regulatory landscape of the European remittance market.

The funding round is a testament to the confidence of investors in Lemfi's business model and its potential for growth. With its sights set on further expansion, Lemfi is well-positioned to become a leading player in the global remittance market, providing critical financial services to African immigrants and beyond.