FintechStartup News

Kuda Bank raises $55M Series B at $500M valuation

London-based, Nigeria operating Fintech startup, Kuda has disclosed a $55m Series B. The funding round which was led by Valar Ventures placed Kuda be valued at $500m. The company stated that the latest funding was an inside round coming from existing investors including Valar Ventures, Target Global, SBI, and few other previous angels. According to the startup, the fund will come in handy in fueling its expansion into other countries outside Nigeria.

The news of the funding is coming just a few months after Kuda raised $25m in its Series A funding round led by Valar Ventures and a year after making a record-breaking $10m see round which was led by Target Global.

The total fund now raised by Kuda from VC investors is now capped at $91.5 million in the period of two years.

Initially, Kuda business model was focused on providing banking services to users who as well are still holding accounts with their various incumbent banks. When people receive their salaries in their old accounts, they then transfer it out to spend and use it through their Kuda accounts.

Kuda was founded by Babs Ogundeyi and Mustapha Musty after they rebranded Kudimoney to Kudabank in 2019. Since its rebranding, the fintech startup has tried to distinguish itself from other traditional banks in Nigeria, through its mobile-first, personalized, and cheaper banking services.

As reported by Techcrunch, while commenting on the new funding round, Kuda’s CEO 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 the expansion and the idea is to build a strong team for the expansion plans for Kuda,”.

Babs said further “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 stronghold on. So this funding is to invest in expansion and have more experience in the company with relation to expansion“.

 

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