Nigeria’s digital fintech, Kuda Bank has completed a $25 million Series A round to continue the provision of modern banking service for Africans and the African diaspora. The funding round was led by New York-based venture capital, Valar Ventures, with participation from existing investor Target Global, an international venture capital firm headquartered in Berlin, Germany and several other existing investors.
Launched in 2019, and headquartered in Lagos and London, Kuda Bank currently provides services for consumers to save and spend money, and it has recently introduced overdrafts. In November 2020, Kuda raised $10 million dollars in a seed round, the largest-ever seed round raised by a startup out of Africa.
At the time of the seed round, Kuda had registered 300,000 customers. The figure has more than doubled to 650,000 to-date. The digital bank also has over one million downloads on the play store. The challenger bank has also grown to provide B2C and B2B banking services to customers in Nigeria. It accounts for over $2 billion in transactions during February 2021, up from $5.2 million in February 2020.
Kuda offers a suite of banking services with a more accessible user interface and a more modern approach where you can interact with the bank using a mobile app, and in addition to basic banking services, it provides tools to help people manage their money more intelligently.
This new fund will be used to speed up customer acquisition, expand leadership roles, and build out new features including a new easy-to-use lending option that the company is currently trailing with select customers.
