Kuda, Nigeria’s first fully digital bank has raised $55 million in its Series B funding round. This round, which comes just a few months after it completed its Series A, values the startup at about $500 million.
Read more about FinTech
Media reports confirm that participants in Series B were existing investors and that Kuda did not actively seek funding from beyond this circle throughout the period from the latest round’s initiation until its completion.
The Series B round was led by Valar Ventures, a US-backed VC, and Target Global, an international VC based in Berlin, Germany. Other participants include SBI and various angels.
This round puts the total amount raised by Kuda Bank to date at about $91.5 million. Recall that they had clinched a $10 million seed round less than a year ago. That was led by Target Global, which has gone on to make further investments in the startup.
The $55 million deal was closed via Kuda’s London entity.
Babs Ogundeyi, cofounder and CEO at Kuda, says that the latest funding round should help the startup reach beyond Nigeria to serve a broader African market. Already, it’s gained over 1.4 million users, more than half of them coming in the past four months alone.
Sign up to the Connect Nigeria daily newsletter
Ricardo Schafer, the partner at Target Global (one of Kuda’s investors), said he was impressed by the vision and ambition of the Kuda team, led by their cofounders.
“For them, it was always about building a pan-African bank, not just a Nigerian leader,” Schafer said in his communication with TechCrunch.” The prospect of banking over 1 billion people from day one really stood out for me at the beginning.”
Investors appear to have been drawn to the startup by its seemingly bright prospects. It’s targeting a large population, a better fraction of over 1 billion people. There’s a huge market for its mobile-first banking services, as indicated by the quick adoption rates witnessed in Nigeria.
Founded as Kudimoney, a FinTech providing online lending services, Kuda rebranded to a full-service digital bank after it obtained a banking license from the CBN in 2019.
The startup’s growth has come by way of smart marketing, as well as word of mouth. Its low-cost and cost-free offerings have attracted a large number of mostly young users, who are also impressed by the convenience that it affords them.
Featured Image Source: Business Post NG
Got a suggestion? Contact us: email@example.com