When you think about fintechs making waves in Africa, Kuda cannot be excluded. Added to its success, the mobile-only banking platform has raised $55 million Series B funding, at a valuation of $500 million.
Founded by Babs Ogundeyi and Musty Mustapha, the bank had an initial funding of $36.6 million from investors including Entrée Capital, Target Global, Valar Ventures, Johan Lorenzen, among others. At the moment, the mobile-only platform has an additional $55 million in its funding.
Led by Valar Ventures and Target Global, the round included SBI among other existing and angel investors.
A partner at Target, Ricardo Schäfer, expressed how the bank’s remarkable features cannot be waved aside.
“We felt that Babs and Musty” — Musty Mustapha, the co-founder and CTO — “are ambitious on another level. For them, it was always about building a pan-African bank, not just a Nigerian leader. The prospect of banking over 1 billion people from day one really stood out for me at the beginning.”
Also speaking on the recommendable operations of the bank, Andrew McCormack, a partner at Valar Ventures, revealed that Kuda is the first African startup in which it has invested and has no regrets.
“Kuda is our first investment in Africa and our initial confidence in the team has been upheld by its rapid growth in the past four months,” he said. “With a youthful population eager to adopt digital financial services in the region, we believe that Kuda’s transformative effect on banking will scale across Africa and we’re proud to continue supporting them.”
The bank processed $2.2 billion worth of transactions in March 2021 with a customer base of 650,000 in the same month. Interestingly, the bank now has an increased customer base of 1.4 million users.
Launched in 2016 as Kudimoney, an online banking platform which saves Nigerians from the stress of long queues in banks, the name was changed to Kuda when the bank received its Microfinance banking licence from the Central Bank of Nigeria (CBN) in 2019.
With its current funding round, the digital platform seeks to further expand into other countries across Africa.
Kuda leverages the ever changing and growing digital world to make banking transactions seamless.
The bank builds on a modern application programming interface infrastructure which makes its operations easier. Offering zero card maintenance fees and free transactions, it makes use of tools to help in saving more and enhancing financial discipline.