It seems the good times keep rolling in for fintech companies in Nigeria. In what seems like a hot streak for this sector, KudaBank has now secured $25 million in Series B funding round.
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KudaBank has been, rather, low key with its growth in the past two years but it has been growing rapidly, nonetheless. The latest funding round was led by Valar Ventures and Target Global as well as a number of other unnamed investors, corporate and individual.
Recall that, only months back, Kuda secured Series A funding to the tune of $10 million which was a big deal at the time. Prior to that, the three-year-old digital bank secured $1.6 million in 2019. With its latest funding round complete, it has now secured in excess of $36 million from investors across its lifetime.
According to Kuda’s CEO, Babs Ogundeyi, Kuda processes over $500 million in transactions monthly and has more than doubled its customer base to 650,000 from 300,000 in under four months. TechCrunch reports that Kuda has processed over 2.2 billion transactions as of February 2021.
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Kudabank was founded in 2018 by Babs Ogundeyi and Mustapha Musty. Ogundeyi had been a finance professional up until then. Musty was previously a software engineer who had worked on bank mobile apps before working to set up Kuda.
Kudabank is operating in a space where it has a virtual first-mover advantage, hence, it is not unfathomable the pace at which it has grown in under four years of existence.
Its competition is growing, however. The Kudabank model copies that of Nubank (Latin America), Eversend (Europe). Locally, VBank is shaping up to be serious competition for Kuda. The company has recently stepped into its advertising game and brand awareness is improving.
That said, customer service has not been without skirmish as card delivery has a major pain point for its growing customer base. Kuda promises to deliver cards within two weeks but customers have complained that they go months without even hearing from Kuda as to cards.
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