— Mobile

Kuda raises $25M more led by Valar to become the neobank for ‘every African on the planet’ – TechCrunch

1 Mins read

Challenger banks continue to make significant advances in attracting customers away from the big incumbents by providing more modern, user-friendly tools to manage their money. Today, one of the trailblazers in this area, Kuda Technologies, is announcing funding to continue building out its specific ambition: to provide a modern banking service for Africans and the African diaspora, or as co-founder and CEO Babs Ogundeyi describes them, “every African on the planet, wherever you are in the world.”

The company, which currently offers mobile-first banking services in Nigeria, has picked up $25 million in a Series A being led by Valar Ventures, co-founded and backed by Peter Thiel, with Target Global and other unnamed investors participating. This is the first time Valar — which has invested in several fintech startups, including N26, TransferWise, Stash, and, just in the last week, BlockFi and BitPanda — has backed an African startup.

Kuda currently provides services for consumers to save and spend money, and it has recently introduced overdrafts (essentially revolving credit for individuals). Ogunyemi said in an interview that the plan is to use these new funds to continue expanding its credit offerings, build-out services for businesses, add in more integrations, and move into more markets.

The funding is coming on the heels of robust growth for Kuda, which is co-headquartered in London and Lagos. Four months ago, when we last wrote about the startup, it had just closed a seed round of $10 million led by Target Global. That was, at the time — and I think still is — the largest-ever seed round raised by a startup out of Africa, and thus as much of a milestone for the tech industry there as it was for Kuda itself.

At the seed round, Kuda had registered 300,000 customers: now, that figure has more than doubled to 650,000, and tellingly, that base is spending more money through the Kuda app.

“In November, we were doing about $500 million in transactions per month,” Ogundeyi said, for services like bill payments, card transactions, and phone top-ups. “We closed February at $2.2 billion.

683 posts

About author
Tristan McCue is a 26-year-old junior programmer who enjoys reading, binge-watching boxed sets, and appearing in the background on TV. He is smart and friendly, but can also be very evil and a bit lazy.He is an Australian Christian. He has a post-graduate degree in computing.
Articles
Related posts
— Mobile

Mobile Alabama for Online Entrepreneurs

5 Mins read
Mobile Alabama is the Mobile Area Chamber of Commerce’s most popular online business training course for entrepreneurs, mobile app developers, and entrepreneurs…
— Mobile

Pakistan edtech startup Maqsad gets $2.1M pre-seed to make education more accessible – TechCrunch

2 Mins read
  Taha Ahmed and Roshan Aziz left their jobs in strategy consulting and investment banking in London earlier this year to found…
— Mobile

Tile secures $40 million to take on Apple AirTag with new products – TechCrunch

3 Mins read
Tile, the maker of Bluetooth-powered lost item finder beacons and, more recently, a staunch Apple critic, announced today it has raised $40…
Get All Latest Blog Direct In Your Website

Leave a Reply

Your email address will not be published.