CEO of LemFi shares his founding journey and advice for entrepreneurs at Pitch2Win event
In the dynamic world of tech startups, few stories are as inspiring as that of LemFi, a leading remittance app for the African diaspora. Founded by Ridwan Olalere, a software engineering veteran with stints at Hotels.ng, ForLoop, Flutterwave, OPay, and Uber, LemFi has made waves in the global remittance market.
The journey began modestly, with an unclear idea that evolved from stock trading to digital banking, and finally to a remittance app catering to Africans in the diaspora. The early days were chaotic, marked by guesswork and no product, but Olalere's mantra of "just start, no matter how small" propelled the startup forward.
By 2021, Lemonade Finance rebranded to LemFi and joined Y Combinator (YC), a prestigious startup accelerator. This was a turning point for the company, as it provided access to resources, mentorship, and a network of like-minded entrepreneurs. YC partner, Michael Seibel, taught Olalere the art of framing metrics persuasively when raising funds, a lesson that proved invaluable.
The app initially focused on the Nigeria-Canada corridor due to the ease of obtaining a Canadian license. However, it quickly expanded its reach, now supporting remittances to tens of countries, including the Philippines and Brazil.
LemFi's seed deck, revamped by Oo Nwoye, replaced the clunky interface with data-driven storytelling. It highlighted monthly revenue of $23,000, licenses in Canada, the UK, and the US, and a 135% growth rate. Market data estimates in the deck were corrected to more accurate figures, reflecting the company's commitment to transparency.
As LemFi's revenue soared, likely crossing the $100,000-$200,000 monthly threshold typical for Series A rounds, the company became more guarded with information due to the sensitive nature of the remittance industry and competition in Africa's tech scene.
Rian Cochran, Olalere's former boss at OPay, joined as a co-founder during the Series A round. The Series A deck featured a sleek design and emphasised team sophistication, attracting investors and setting the stage for further growth.
Olalere's speech at Pitch2Win offered valuable insights into the startup's journey. He emphasised the importance of starting early, leveraging one's experience and network, navigating complex markets carefully, building scrappily and evolving, solving a real pain point, staying customer-centric, engaging actively with peers and mentors, embracing iteration and learning, and pitching well. These insights provide a practical roadmap for tech entrepreneurs, especially those tackling complex markets like remittance and borderless banking for Africa.
With the global remittance market valued at about $800 billion annually, and Africa accounting for roughly $100 billion, LemFi is well-positioned to continue its growth and impact. The future looks bright for this innovative remittance app, revolutionising the way Africans in the diaspora send money home.
Startups like LemFi rely heavily on investment to fuel their growth and expansion in the technology-driven business landscape. Oo Nwoye's redesign of LemFi's seed deck, emphasizing data-driven storytelling and team sophistication, proved instrumental in attracting investors during the Series A round. The company's focus on the remittance industry, a market valued at approximately $800 billion annually, presents a lucrative opportunity for further finance and growth.
