After securing €46M, LemFi acquires UK fintech Pillar to expand credit access for immigrants globally

Oakland, California-based LemFi, an immigrant financial services platform, announced that it has acquired UK credit fintech firm Pillar.

The announcement comes five months after raising $53M (approximately €46M) from Highland Europe earlier this year.

Founded by Ashutosh Bhatt and Adam Lewis, Pillar’s technology will help people moving to new countries access credit products that were difficult to get before.

The core of Pillar’s service is its unique data and analytics system, powered by Open Banking, which allows the platform to grow globally.

Ashutosh Bhatt, Pillar co-founder, says, “Despite earning a good salary at Barclays, I couldn’t access even the everyday products I’d had in India. I couldn’t get an iPhone, let alone a credit card. There have been slight improvements, but we still can’t offer equitable access to bank accounts or credit cards to someone from another country. I’m excited for the impact we will have together with LemFi to increase reach by 10X and build truly global access to credit.”

18% growth for LemFi Credit

The acquisition comes as LemFi has recently become the first major remittance platform to incorporate credit into its core offerings with the launch of LemFi Credit.

LemFi Credit quickly gained over 8,000 users in just six weeks of its private beta, with an 18 per cent growth each week, claims the company.

Customers receive a virtual card that works instantly with Apple Pay or Google Pay, and physical Visa cards will be available later this year when the service launches for everyone.

These cards will use Pillar’s technology to:

• Recognise international credit histories, allowing immigrants to “import” their credit standing from their home countries.
• Provide alternative credit assessment using non-traditional data points to evaluate creditworthiness.
• Offer graduated credit building, starting with secured or limited-line products that grow with the customer.
• Integrate with remittance services, combining Lemfi’s core cross-border payment capabilities with credit building.

Ridwan Olalere, LemFi co-founder and CEO, says, “Through LemFi Credit, we already provide our existing customers with the ability to grow their credit right within the LemFi app. With this acquisition, we plan to offer Credit Cards to customers, starting with the UK, and roll out the full suite of LemFi Credit features publicly. Credit forms a critical part of our vision of building a full-stack financial service for immigrants everywhere, and Rian and I are particularly pleased that Adam and Ash have agreed to join us in building it. ”

How does this acquisition benefit LemFi?

The acquisition of Pillar will enable the company to provide more specialised credit services and cards tailored specifically for immigrants.

This acquisition grants LemFi access to Pillar’s technology, FCA credit licence, and proven growth track record.

In addition, the deal sees Pillar’s co-founders and Revolut alumni Ashutosh Bhatt and Adam Lewis join the LemFi team.

LemFi: Designed for immigrants

LemFi, founded in 2021, is a financial services platform designed for immigrants around the world.

It started with payments and remittances and now offers multi-currency accounts for sending and receiving money globally at low costs.

With over two million customers in the US, UK, Canada, and Europe, and a monthly transaction volume of $1B, the platform is expanding into Asia and Latin America.

The US company has experienced steady growth of 30 per cent each month.

The LemFi team is 300+ people across Africa, Europe, and North America, and it has $85 million in funding from investors including Highland Europe, Left Lane Capital, Palm Drive Capita,l and Y Combinator.