What a nice way to start a new month! That’s what we all at Business Elites Africa thought when we first heard about Kuda Bank’s newly finalised $55 million series B Round. Let’s briefly give you all the details on that.
Valued at $500 Million
It’s safe to say that Kuda, which prides itself as a “challenger bank”, is well on its way to becoming another African startup unicorn. This is because the company’s latest funding round was based on a valuation of $500 million. According to information verified by us, the round was led by California-based payments giant Paypal. Other investors include Valar Ventures, Target Global, SBI and other angel investors who previously invested in the fintech startup.
Interestingly, Kuda Bank wasn’t even actively raising when the $55 million round was initiated and quickly finalised. This, in our opinion, makes it a rather pleasant surprise. Or should we say… an August surprise?
Kuda Bank now plans to put the money into good use –introduce more services for its Nigerian market, prepare a planned launch into other African markets and generally consolidate on its operations. CEO, Babs Ogundeyi, explained the plan better when he said;
“We’ve been doing a lot of resource deployment has been in our operational entity, in Nigeria. But now we are doubling down on expansion and the idea is to build a strong team for the expansion plans for Kuda. We still see Nigeria as an important market and don’t want to be distracted so don’t want to disrupt those operations too much. It’s a strong market and competitive. It’s one that we feel we need to have a strong hold on. So this funding is to invest in expansion and have more experience in the company with relation to expansion.”
Now, Let’s Refresh your Memory about what Kuda Does for a ‘Living’
Built on an API infrastructure, Kuda Bank is a neobank which specialises in offering personalised and mobile-first banking services to millennials and other young professionals. The fintech startup has since recorded consistent growth since 2018 when it was established, thanks in part to a full-service banking license from Central Bank of Nigeria and the millions it has raised from investors which have enabled it to develop on its products and services.