Online digital bank startup, Kuda, yesterday raised $1.6 million in a pre-seed round from angel investors Haresh Aswani, Ragnar Meitern, amongst others.
Formerly known as Kudimoney, Kuda launched in 2016 as a lending platform but later rebranded after receiving a banking license from the Central Bank of Nigeria (CBN) in June.
The startup boasts of having the lowest transfer rates in Nigeria.
It allows airtime purchase, bill payment options and in addition to issuing free debit cards, allows free account opening online.
The startup has its sights on becoming the first digital-only bank without physical locations in Nigeria as it prepares for its official launch in the fourth quarter of the year.
This fresh funding received will help Kuda commence operations as soon as possible and provide support for its developer teams.
To make these plans possible, the startup has made strategic partnerships with three West African banks — Guaranty Trust Bank (GTB), Access Bank and Zenith Bank.
The Lagos and London-based startup is founded by Babs Ogundeyi and Musty Mustapha.
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Nigerian startups raised $55.4m in Q1 2020; over 99% of which came from foreign sources. Find out more when you download the full report.