African markets

Lemonade Finance expands to seven African markets

African diaspora-focused fintech startup Lemonade Finance has expanded user transaction options to Senegal, Ivory Coast, Benin, Cameroon, Tanzania, Rwanda and Uganda.

Initially, users could only send money to Nigeria, Ghana and Kenya at affordable rates on the Lemonade Finance platform. The new extension provides users with more alternatives to transact across countries.

Ridwan Olalere and Rian Cochran founded Lemonade Finance in 2020. The Y Combinator-backed fintech is registered with the Financial Conduct Authority and provides users with accounts in their country of residence and country of origin for personal and business banking needs .

The financial company is licensed in Canada as a Money Services Business and has the necessary licensing coverage in the US, UK and Europe to allow Nigerians to send money to bank accounts in these countries.

Lemonade Finance addresses the challenges of cross-border payments, such as long transaction turnaround times, usage restrictions and high fees, faced by Africans. Allowing users to switch between currencies, Lemonade claims to have thousands of users in North America and Europe.

Its participation in Y Combinator W21 saw the startup close a $725,000 pre-seed funding round that included Microtraction, Ventures Platform, and Acuity Venture Partners.

The company’s expansion opens the doors to a greater share of the African market for Lemonade Finance, spurring the startup’s drive to build the largest neobank for African immigrants.

Afeez Gbotosho, product manager at Lemonade, said the addition of Senegal, Ivory Coast, Benin Republic, Cameroon, Tanzania, Uganda and Rwanda was based on the data. . “These six countries have nationals abroad who often need to send money home.

The fintech company is firmly banking on its instant cross-border delivery and innovation to stay on top despite the competition.