Investors update: August 25 2023 - Remittance fintech startup LemFi raises $33m

Remittance fintech startup LemFi raises $33m

Highlights

• A fintech startup looking to transform financial services for immigrants, LemFi, has raised a $33 million Series A round led by Left Lane Capital. 
• The startup offers international transfers at relatively inexpensive exchange rates with zero fees on transfers or account maintenance.
• With the conclusion of its latest investment round, the company said it would seek to expand its product offering to the United States, Europe, the Middle East, and Asia, as well as innovate new product offerings according to the needs of its users. 

Source: Nairametrics

Our Takeaway

Regardless of the country they come from, immigrants face several common problems such as adapting to the banking systems of their new homes and also sending money back home. In 2022, migrant remittances reached $626 billion globally. For many African countries, these remittances are an important source of foreign exchange. Some countries even encourage their citizens to find work overseas so they can send money back home. But this several hundred billion dollar migrant remittance market is a broken sphere that startups like LemFi are looking to address. 

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New BRICS bank raises $79m to fund projects in SA

Highlights

• New Development Bank (NDB), a multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS), has raised $78.82 million via its debut “ZAR bond issuance”.
• The NDB’s two bonds, a 1 billion rand ($52.3 million) five-year note, and a 500 million rand three-year note attracted 2.67 billion rand of bids in total.
• Proceeds will be used to fund infrastructure and sustainable development projects in South Africa.

Source: Sunday Mail

Our Takeaway

The South African bond market has struggled in recent years to attract new issuers to match the growing demand from domestic investors looking for quality credit assets. The successful outcome of the issuance not only sets the benchmark for future issuances by NDB but is also relevant in addressing infrastructure gaps in the country. Africa presents a massive infrastructure investment opportunity with a current investment gap of over $150 billion per year. Only 60% of its population has access to basic electricity, among other infrastructure challenges. With funds like the NDB bond, the continent’s infrastructure market is poised for substantial growth in the coming years.

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Fla6labs supports Egypt’s nascent construction tech space

Highlights

• Makers, the construction technology (contech) accelerator launched by Flat6Labs in partnership with SIAC and Dar Al-Handasah (Shair and Partners), has announced that it will award the selected startups up to $100,000 each.
• The program will also grant access to pilot projects, industry experts, mentorship, business training, one-on-one consultations, coaching sessions, networking opportunities, and essential resources to cultivate and scale their businesses. 
• The program will initially focus on Egyptian entrepreneurs, before expanding to Saudi Arabia and subsequently to the wider Mena region.

Source: Disrupt Africa

Our Takeaway

Compared to other sectors like financial services or e-commerce, Africa’s construction industry has typically moved at a slower pace when it comes to embracing innovation or digitalization. But that’s not for the lack of exciting startups in the space working to tap opportunities in an industry expected to continue to grow sustained by mega infrastructure projects and efforts to address Egypt’s housing deficit. Due to its low popularity, players in this space struggle to secure early-stage funding and support, highlighting the importance of the Makers program.