Investors update: August 25 2023 - Remittance fintech startup LemFi raises $33m
3 min Read August 25, 2023 at 12:52 PM UTC
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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.
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.
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.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
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