Nigerian fintech startup, Kuda, has raised $10 million in a seed funding round, in its bid to expand further across the African continent. Among the investors that took part in the funding are Target Global, Entrée Capital and SBI Investment, as well as fintech founders and angel investors like Raffael Johnen, Johan Lorenzen, Brandon Krieg, Ed Robinson, and Oliver and Lish Jung.
According to Kuda, they will use the funding to accelerate growth plans and keep up with customer demand. Specifically, funds will be used for key hires, product development, and to expand operations across Africa.
Launched in 2016 as lending platform Kudimoney, Kuda rebranded in June last year and received a banking licence from the Central Bank of Nigeria (CBN) to launch a full service digital bank. Then, it became Nigeria’s first and only full-stack and mobile-first bank having raised a $1.6 million funding round in September to complete its launch.
The bank provides full banking services through its apps, allowing Nigerians to run a current account, save money, and earn annual interest. It has seen an enormous growth and now serves over 250,000 customers and processes over $500 million of transactions monthly.
Recently, US-based payments company Stripe finalized its acquisition of Nigerian-based startup Paystack for a deal worth $200 million. Paystack provides a quick way to integrate payments services into an online or offline transaction through an API.