Nigeria’s First Digital Bank, Kuda Raises $10 million dollars seed, the Largest Seed Round in Africa
Kuda bank, a Nigerian fintech startup that operates a popular mobile-first challenger bank for consumers and small businesses, has raised a $10 million dollar seed round. The $10 million seed round is the biggest seed round ever to be raised in Africa and it was led by European VC firm, Target Global with participation from Entrée Capital and SBI Investment, along with a number of other notable individuals fintech founders and angels.
The funding comes as a result of strong demands for its services and ambitions to become the go-to bank not just for those living on the continent, but for the African diaspora.
Co-founded by Babs Ogundeyi and Mustapha Musty, Kuda bank started out in 2016 as Kudimoney “the bank of the free”, an online-only savings and lending platform, and had gone through a couple of funding rounds before transitioning into Nigeria’s first actual digital-only bank without a physical location. Kuda is a full-service digital-only bank with a banking license, designed for smartphones, free of outrageous charges, and great at helping budget planning.
In June 2019, Kuda bank received a banking license from the Central Bank of Nigeria (CBN) to launch as a full-service digital ‘No-Fee’ bank, therefore, raising US$1.6 million in September 2019 to complete its launch. Since then, Kuda has largely kept to its promise of helping users achieve their financial goals, offering complete control over all expenditures and a banking approach that is exclusively linked to the real economy.
Haven experienced exponential growth, Kuda now serves over 250,000 customers and processes over US$500 million of transactions monthly. In June 2020, it launched its Web feature to allow its customers to track their money in real-time, adding to its range of features that allow Nigerians to have a current account, save money automatically and earn up to 15% annual interest without the burden of bank charges.
Speaking on the new funding round, Kuda Chief Executive Officer (CEO) and co-founder Babs Ogundeyi said,
“We are very excited about Kuda’s next phase. It is a great validation of our business model and rapid growth to date – to have the support of both Europe’s leading fintech investors and founders of successful global technology businesses. Their financial backing and support will only benefit Kuda and our customers.”
Dr. Ricardo Schäfer, partner at Target Global, who will also join Kuda’s board said,
“Kuda is one of Africa’s leading digital challenger banks and one of the fastest-growing Fintechs on the continent. We are very excited to be working with Babs, Musty, and the entire Kuda team to further build on the fantastic momentum they have had since inception and support them in taking the company to the next level.”
Nigeria’s First Digital Bank, Kuda Raises $10 million dollars seed, the Largest Seed Round in Africa