Initially, users could only send money to Nigeria, Ghana and Kenya at affordable rates on the Lemonade Finance platform.
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 expansion gives users more alternatives to make transactions across the 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 finance company is licensed in Canada as a money service business and has necessary license coverage in the US, UK and Europe to enable Nigerians to send money to bank accounts in those countries.
Lemonade Finance tackles the cross-border payments challenges, such as long transaction completion times, restrictions in terms of use, and steep fees, encountered by Africans. Allowing users switch between currencies, Lemonade affirms to have thousands of users across North America and Europe.
Its participation in Y Combinator W21 enabled the startup to close a US$725,000 pre-seed funding round which included Microtraction, Ventures Platform, and Acuity Venture Partners.
The company’s expansion unlocks the doors to a greater share of the African market for Lemonade Finance, stimulating the startup’s drive to build the biggest neobank for African immigrants.
Afeez Gbotosho, Lemonade’s head of products, said the addition of Senegal, Ivory Coast, Benin Republic, Cameroon, Tanzania, Uganda and Rwanda was data-driven. “These six countries have nationals abroad who often need to send money back home.”
The fintech company firmly stands on its instant cross-border delivery and innovation to stay on top of the game despite competition.