Kuda Technologies, which currently offers mobile-first banking services in Nigeria, has picked up US$25 Million in Series A funding led by Valar Ventures, Target Global and other unnamed investors participating.
This is the first time that Valar, which has invested in several fintech startups, including N26, TransferWise, Stash, BlockFi and BitPanda, has backed an African startup.
Kuda Technologies offerings
Kuda technologies portfolio includes services for consumers to save and spend money. It has recently introduced a revolving credit for individuals.
According to Kuda’s co-founder and CEO, Babs Ogundeyi, the plan is to use these new funds to continue expanding its credit offerings, build out services for businesses, and add in more integrations to move into more markets.
This cash injection is coming on the heels of robust growth for Kuda Technologies, co-headquartered in London and Lagos.
Only four months ago, it had just closed a seed round of US$10 Million that was sourced from Target Global venture capitalists. This was and is still considered the largest seed round raised by an African startup.
Kuda had listed 300,000 customers at this seed round, a figure that has since risen to 650,000.
Ogundeyi disclosed that while Kuda was doing US$500 million worth of transactions per month in November with services like bill payments, card transactions and phone top-ups, this figure has risen to US$ 2.2 Billion at the close of February 2021.
Kuda has its microfinance banking license from the Central Bank of Nigeria, has debit cards, manages cash transfers and payments, and builds all the services in the stack itself.
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