Kuda Bank Raises Additional N28.33bn As Credit To Users Hit N11bn

Nigerian owned startup, Kuda Bank, has raised an additional $55m an equivalent of N28.33bn in local currency to drive it’s expansion plan into other countries.

The London branch of the bank which is the first mobile – only bank approved by the Central Bank of Nigeria and offers banking services built in new Application Programing Interface (API) infrastructure closed its series B funding of $55m.

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The fund was raised at a valuation of $500m due to Kuda’s impressive growth in the past months.

The funding was raised from existing investors co-led by Valar Ventures and Target Global.

In March this year, the start-up founded by Babs Ogundeyi the Chief Executive Officer and Musty Mustapha the Chief Technical Officer raised $25m in it’s series A funding.

Over the months, Kuda has doubled its registered customers to 1.4 million users from 640,000 users with huge focus on the Nigerian market.

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“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,” Ogundeyi, the CEO told TechCrunch.

But the company does not consider relenting in the Nigerian market it described as competitive and cardinal to its operations on the African continent.

“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,” he added.

According to the CEO, by the end of the second quarter, Kuda has disbursed $20m ( N11bn) to 200,000 customers.

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But the credits were given after the bank “pre-qualify the most active users,” he noted.

The loan has a tenure of 30 days and default has been minimal according to the CEO.

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