Kuda’s Chief Financial Officer, Ryan Laubscher, has given three reasons why the company completed a $25 million and $10 million funding rounds four months apart. According to him, the company’s growth objectives informed the strategic move, as did some global economic considerations as well as the great investment prospects that were presented by Valar Ventures.
Laubscher, who was a guest during Disrupt Africa’s latest podcast edition, said “We had been growing so fast over the last 10 or so months that we felt given the economic outlook globally, which was and remains fairly clouded, it was a good idea to buffer our reserves in terms of making sure we had capital available.
“It was also probably the right time to raise just in terms of our growth ambitions. It was gratefully received. They are a fantastic, high quality group.”
Speaking further, the CFO said Kuda now has enough capital to pursue its growth agenda thanks to the recent funding rounds.
“It is important to make sure that as you need capital, as you spend capital on R&D, on making sure we build incredible products, on providing amazing customer service to our customers, that we have that capital available to us,” he said.
Recall that Business Elites Africa reported about both funding rounds, first in November last year and in March this year. At the time, the $10 million funding round in November was described as the biggest seed round to ever be raised in Africa. But just four months afterwards, the Nigerian fintech startup surprised a lot of people by announcing the $25m Series A Funding.
In the meantime, Kuda is consolidating on its growth as it continues to facilitate a mobile-first approach to banking across Africa. It recently started putting together a team in Cape Town South Africa and said it has also been hiring more experienced professionals across board.
Note that Kuda received a banking license from the Central Bank of Nigeria in 2019. It operates a full service digital bank and has been described as Nigeria’s first and only full-stack and mobile-first bank.