Kuda, a Yaba (Nigeria) based digital bank announced on 18th March 2021 that it has raised US $ 25 million in its Series A funding round. The round was led by Valar Ventures along with participation from existing investor Target Global.
Investors: Valar Ventures is a New York, United States, based venture capital firm that was founded in the year 2010 by Andrew McCormack, James Fitzgerald and Peter Thiel. It, as it says, invests mainly in high-margin and fast-moving technology companies in different sectors.
“With the rapidly growing, youthful population who are open to new financial alternatives, Kuda is well-positioned to benefit and will transform the landscape of African banking. We are excited to lead their Series A and continue on the journey alongside Kuda.”—Andrew McCormack, founder of Valar Ventures.
Purpose of investments: The current round of investment comes only a few months after a successful seed round in which Kuda had raised US $ 10 million. The funds of the current round would be utilised, according to Kuda, to drive growth in Nigeria, further expand in other countries, speed up customer acquisition, expand leadership roles and add new features to its platform.
Kuda is a full service no fee digital-only bank that was founded in 2018 with Babs Ogundeyi and Musty Mustapha as the founders.
Kuda was, a few years ago, merely a savings and lending platform known as Kudimoney that helped Nigerians save money at ease. However, in 2019 it obtained a banking license from the Central Bank of Nigeria (CBN) and rebranded itself as a full-service digital bank. It runs with the main motto of making banking affordable to all Africans in the world.
Besides providing free banking as its USP, Kuda offers a range of services to its customers: it helps a person track his/her spending habits, creates a smart budget to help control spendings, offers a free debit card and helps save money while spending by putting a certain percentage of payments aside each time.
Since its launch, Kuda has acquired over 600,000 customers and processed over US $ 2 billion in transactions.
What the CEO has to say:
“At Kuda, we know that the companies which are best able to leverage technology and talent will be the same companies which are best positioned to provide huge numbers of people across Africa with access to a vastly improved financial system that places the customer at its centre. We recognise the great strides that we have taken to get to the point at which we are now, but even more importantly we recognise just how far we still have to go to achieve our objective of providing every African with access to powerful, appropriate and affordable financial services”—Babs Ogundeyi, co-founder and CEO of Kuda.
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