Resources / We Weren’t Sure About Lemonade Payments – Then This Email Landed

In April 2024, we were on the fence about Lemonade Payments.

A Kenyan fintech tackling money transfers across the continent, Lemonade had a strong founding team and a clear vision – but early traction was limited, and our IC wasn’t quite ready to commit.

Then we received an update from co-founder Andrew Kibe.

It was hands down the best founder update we’ve ever received. Honest, reflective, and full of momentum. It walked us through the early struggles, the questions they were asking themselves, and the sharp turnaround they’d engineered in just a few months.

From modest early traction to a breakout Q1:
→ 11x growth in transactions
→ 7x growth in users
→ 87% increase in revenue
→ 68% increase in ARPU

But more than the metrics, it was the clarity of thinking, the insight into their customers, and the real-world impact that stood out.

48 hours later, we invested $100,000 into Lemonade Payments.

We loved the email so much, we asked if we could share it publicly—and Andrew and his co-founder Mark said yes. It’s a must-read for any founder.

4th April 2024

"

Hi Baobab team, I trust that you are well. Please find Lemonade’s story over the last quarter: Three months ago, staring at the measly numbers on the screen, I felt a knot twist in my gut. 3,669 transactions. 3,658 users. A paltry $5,199 in revenue. Lemonade Payments, the brainchild of countless sleepless nights and unwavering belief, seemed like a dream teetering on the edge of a cliff. Were we solving a real problem? Were we even making a dent in the vast landscape of African money transfers? Doubt gnawed at the edges of our enthusiasm, but the team, a passionate bunch fuelled by endless cups of coffee and a shared vision, refused to be deterred. We doubled down on outreach, revamped the user experience, and relentlessly pursued partnerships to spread the word. The journey wasn't easy, but the first signs of growth were like a cool breeze on a scorching day. Transactions started trickling in, a few dozen here, a couple of hundred there. The user base, initially stagnant, showed a flicker of life. Then came the first quarter of 2024. And let me tell you, it was a game-changer. Transactions exploded; an unbelievable 11x jump to nearly 40,000. The news spread like wildfire. People were noticing the ease and security Lemonade Payments offered. Our customer base followed suit, growing by 7x to a staggering 26,757 users. It wasn't just the numbers, though. It was the stories; our female base being able to make payments without fear of harassment, the building contractor being able to make bulk payments to their contract staff, and our business partners being able to earn transaction fees from a business line they would have never tapped in before. We were making a difference. The real validation, however, came from the revenue figures. It wasn't just a bump; it was a phenomenal 87.57% surge, pushing us to almost $42,000. But the most exciting metric was the ARPU (Average Revenue Per User). Up by a healthy 68%, it climbed to a much more sustainable $6.7. This wasn't just a financial win; it was a signal. People were using Lemonade Payments regularly, trusting us with their hard-earned money. The future of a financially inclusive Africa, the future we envisioned, was inching closer. The knot in my gut has unraveled, replaced by a fierce determination. This is just the beginning. We're ready to quench Africa's thirst for a simpler, faster, and more secure way to send money. Andrew

Published 7 April 2025