Nigerian digital bank, Kuda, secures $25m Series A, four months after raising $10m seed

by | Mar 18, 2021

Nigerian-based digital bank, Kuda, has announced a $25m Series A, led by Valar Ventures, a US-based venture capital firm. Target Global and other unnamed investors participated in the round.

Founded as Kudimoney in 2016 by Babs Ogundeyi and Mustapha Musty, the company started as a lending service, but it later transitioned into a challenger bank that helps consumers save and spend money.

Ogundeyi reportedly explains that the company plans to use these funds to expand on its credit offerings, build-out services for businesses, add more integrations, and expand to new markets.

This round comes just four months after a record-breaking $10m seed round in November 2020, and a year and six months after its $1.6m pre-seed investment in September 2019. This brings its total funds raised to $36.6m

The Nigerian digital bank has reportedly more than doubled its customer base from 300,000 customers in November 2020, to 650,000 customers in March 2021.

Ogundeyi claims that it’s raking in $500 million transactions per month for services like bill payments, card transactions among others. Per Techcrunch, the company processed $2.2 billion in February 2021.

The startup also plans to expand outside the shores of Africa in order to serve Africans within and outside the continent.

Kuda’s latest round follows Flutterwave’s announcement of a PayPal partnership and its rise to unicorn status.

Recall that it announced its record-breaking $10m seed round following Stripe’s acquisition of Paystack, another notable move in the African startup space.

With a payments space that needs several solutions, Kuda’s model in Africa closely follows that of other Neobanks across the globe a la Nubank, Revolut, Chime, Eversend which are looking to revolutionise the banking system.

For Kuda, implementing a unique African model alongside could be a springboard to further growth for the company.

DON’T MISS OUT!
Techpoint Digest
A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!
Stay Updated
Give it a try, you can unsubscribe anytime. Privacy Policy.
Senior Reporter at | Website

Writer and Narrator.  Tech, business and policy analysis is my daily bread.

Looking to chat? Catch up with me, @eruskkii, on Twitter or send a mail to emmanuel@techpoint.africa

Techpoint Build 2021 is here! Be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free now.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

I wasn’t expecting this

I wasn’t expecting this

Today on #TechpointDigest, @OnomeOneyibo discusses #WorldFoodDay, PaySika’s $350 pre-seed, and several other things tech.

DON’T MISS OUT!
Techpoint Digest
A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!
Stay Updated
Give it a try, you can unsubscribe anytime. Privacy Policy.
close-link

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap