In a tense race against fierce competition, LemFi, the cross-border payments platform disrupting the African fintech space for immigrants, was crowned the Nigerian Tech Product of the Year for 2023.
LemFi, formerly Lemonade Finance, simplifies remittances and allows Africans abroad to send and receive money from 12 African countries.
At The Crossover Show hosted by Big Tech This Week’s Fatu Ogwuche, industry veterans awarded LemFi the coveted title, applauding the company led by Ridwan Olalere and Rian Cochran.
“It simply works,” declared Techcircle’s OO Nwoye, one of the show’s panellists. “Not that remittance is easy, but I visited four African countries and did not have challenges transacting in Senegal, Kenya, or Ghana.
With LemFI, it was like having a local bank account.”
LemFi’s success rests on a two-pronged strategy – strategic acquisitions of licenses and building a robust network of financial partners.
Their journey began in 2020 as Lemonade Finance, facilitating remittances from Europe and North America to Nigeria, Ghana, and Kenya.
In 2021, they swiftly expanded to the UK and added ten new African remittance corridors, demonstrating their rapid growth and ambition.
The company acquired UK-based Rightcard Payment Services in 2021, allowing it to secure an EMI license and offer its customers e-wallets and a wider range of services.
The rebrand, Series A raise, and an excellent 2023 for LemFI
2023 was a pivotal year for LemFi. The company rebranded from Lemonade Finance to “LEMFi” in May 2023, symbolizing their new ambition.
- “Our new name represents our unwavering dedication to breaking down barriers and transcending borders,” emphasized Ridwan Olalere, LemFi’s Founder and CEO.
- “It symbolizes the strength and resilience of our community and allows us to carve our own unique meaning within it.”
Further solidifying their position, LemFi obtained an International Money Transfer Operator (IMTO) license from the Central Bank of Nigeria in July 2023 through Rightcard Payment Services.
This allowed them to partner directly with Nigerian banks, streamlining the remittance process and eliminating the need for intermediaries.
Adding to their momentum, LemFi secured a $33 million Series A funding round in July 2023.
“If you look at it from the angle of problem-solving, LemFI were the first to boldly say “we are building a bank for the diaspora, in a Fintech market where many people were trying to do the same thing,” observed Nwoye, who reiterated that the execution and dedication of the founders earned the company well-deserved investor confidence amid a fintech winter.
LemFI, Africa’s first cross-border unicorn?
With the World Bank reporting a record $20.1 billion in remittances from Nigerians abroad in 2022, a figure projected to reach $26 billion by 2025, the opportunity for LemFi is substantial.
Nwoye says it’s a shame that Nigeria has not produced a unicorn in the remittance space despite remitting billions of dollars.
- “The product is helpful because Africans in the diaspora are a large contingent. Most of the time, we built for the Africans at home, but it’s a good sign that there is an opportunity to build for Africans in the diaspora.”
However, Benjamin Dada, another panellist on the show, expects to see more regulation of the cross-border space from the Central Bank of Nigeria in 2024.
- “Right now, it’s a bit unclear in the space. You may have an IMTO (International Mobile Operator) licence but still need a letter of objection and a banking partner. Startups are just doing what they’re doing. For instance, he says the IMTO is not really for business, but people are using it for business.
LemFi’s win at The Crossover Show is a testament to its dedication to simplifying financial transactions for international communities.
Their focus on seamless user experience, strategic acquisitions, and building solid partnerships has paved the way for their remarkable success.
LemFi could revolutionise the cross-border payment landscape in Africa and beyond as it continues to expand its reach and refine its offerings.
About the Crossover show
The Crossover Show is an annual recap of the most significant moments in African tech. In the pilot, which aired on Big Tech This Week’s YouTube channel on January 1st, Fatu Ogwuche and four guests explored the significant events that made the headlines in African tech.
