Kuda, a startup out of Nigeria that operates a popular mobile-first challenger bank for consumers has announced that it has raised $10 million — the biggest seed round ever to be raised in Africa.

According to a techcrunch.com report, the funding comes on the back of strong demand for the firm’s services and its ambitions, which it quoted it CEO, Babs Ogundeyi to have said was to become the go-to bank not just for those living on the continent, but for the African diaspora.

“We want to bank every African on the planet, wherever you are in the world,” he said in an interview. It’s starting first in its home market: since launching in September 2019, it has picked up around 300,000 customers — first consumers and now also small businesses — and on average processes over $500 million of transactions each month,” he added.

The $10 million was being led by Target Global, the giant venture capital out of Europe, with Entrée Capital and SBI Investment (once part of SoftBank, now no longer) also participating, along with a number of other notable individual fintech founders and angels.

The list includes Raffael Johnen (founder of Auxmoney), Johan Lorenzen (founder of Holvi), Brandon Krieg/Ed Robinson (founders of Stash), and Oliver and Lish Jung (angel investors in Nubank, Revolut, and Chime).

Prior to this Kuda — which is co-founded by Ogundeyi and CTO Musty Mustapha — had raised $1.6 million in a pre-seed round to launch a beta of its service, and Ogundeyi had said he’s already working on a much bigger Series A. No valuation is currently being disclosed.

In a year where many have been watching the world economy with some trepidation on the back of a raging health pandemic hitting multiple geographies, fintech in Africa has been in the spotlight of late.

Most recently, Paystack — a payments start-up out of Nigeria was acquired by Stripe for over $200 million, making it not only Stripe’s biggest acquisition, but the largest exit-by-acquisition to-date for any Nigerian start-up.

That news followed closely on the heels of Interswitch, another payments start-up, hitting a $1 billion valuation on the back of an investment from Visa.

“Nigeria — currently the biggest single economy in Africa — has also been at the center of a lot of fintech activity, and Kuda has been taking that opportunity by the horns.

“In its case, that has started with building Kuda’s footprint from the ground up. The rise of the challenger bank has been one of the more interesting developments in the world of consumer fintech, with companies like N26, Monzo, Starling, Chime, NuBank and Revolut finding a lot of traction with younger users,” the report added.

Source: https://www.thisdaylive.com/index.php/2020/11/11/firm-raises-10m-eyes-digital-first-banking-licence/

Who Dey give all these guys this money self.

Na so so so seed funding we Dey hear everytime.

I sabi FinTech too, just dash me investment.

Kudos to these young Nigerians successfully growing plants on a rocky soil composed of nepotism, religious fundamentalism, crony capitalism, and visionless, unsustainable leadership.

Some Nigerian youths keep braving the odds, despite the BUAs and Dangotes getting all the juicy concessions, tax cuts, and preferential treatments.

There is no special policy made to encourage startups in general, or access to low-interest loans and research grants for meaningful tech startups, but there are several policies for cement producers and crony capitalists disguising as self-made successful multibillionaires. To say that this country is preparing for her future is to lie to yourself and insult logic.

This guys are just dreamers and sweet talkers. Pls, don't be deceived with all these sensational money.

Number 1, they are an online microfinance bank
Number 2. No Investor will give you 10m all at once without meeting a certain milestone. The money is given bit by bit and per milestones
Number 3: how did they raise the money, debt financing or selling of their equity.

With all the amount they have raised, they will end up becoming mere employees in the company they founded

They claim they have 300k customers, something is wrong with that claim, paystack had 60k customers, how come they have 300k customers, even some micro finance bank in naija don't have up to 100k clients.

Paystack sale at this time was the most brilliant strategy employed... they have seen zuckerbergs whatsapp pay coming, it is gradually overtaking India 1bn population and sending Google pay into oblivion, china has its wechat(pay), so it's kind of difficult to penetrate china.. it's only a matter of time before its employed in Nigeria. with our addicted usage of whatapp, definitely quickteller, USSD codes, remitta, kuda and all others have serious competition in the nearest future.

Scale, establish revenue, provide value before taking on new capital in subsequent series

There's something as too much capital

I'm yet to hear of their services

Kare Omoluabi.

These Virtual Microfinance Banks are the Future and it is so easy to see. Whether day-to-day banking or Fixed Savings Investment, they are the way to go. Hopefully I would be using them on a Full-time basis soon.


Anyways if you need Maize, Groundnuts and/or Soyabean in large Quantity within Lagos, I can Supply you at a good Price. Serious persons only Please. Hit my contact in Siggy below

As much as you might look around & feel there's no hope, especially with the negative things emanating from leaders.
Just look at yourself, you are alive. Leave everything else n 1st thank God for life. Then think of a way forward for yourself 1st, before carrying others along

Congrats KUDA

Congratulation


In this sector Omoluabi are number one

That's great!

Do you want to start your own platform like Paystack, Flutterwave, e.t.c Kindly check my signature as I will develop it for you. Fintech really pays. Start yours today!

There is another company in the fintech space in Nigeria that goes by the name "Kudi".

I hope the similarities in their names won't cause some confusion later in future

Great, we need to educate our children the importance of technology and science ,I don't know how that boy that founded Facebook I mean mark will surpass dangote who has been doing business before he was even born..if not science and technology

Kzinne:
Yoruba guys balling with brilliance. The other guys from that region won't like this

Naive stupid comment

Content like this gladdens my heart,So happy seeing youngins make it.Knowing my own turn will come soon at my pace..Thank You God.God bless every body Making Major Moves in diff occupations in dis hard Country rn.You all blessed fr

Against all odds, the young minds are making a difference. This is commendable.

Say no more. Yorubas own and dominate anything Fintech in this country. No be 2by2 shops and screaming market everywhere. We have gone past those ones.

How manage

Nigerian youths are not lazy youths aftercall.

Very encouraging.

who's using this kuda? how good is it?
I have the app but haven't used it yet

chinavs9ja:
That's great!

Do you want to start your own platform like Paystack, Flutterwave, e.t.c Kindly check my signature as I will develop it for you. Fintech really pays. Start yours today!

. Start it na. Or you don't like money ?

And Adamu Garba is busy making a fool of himself about.