Kuda

Kuda is a Nigerian digital bank that provides users with solutions for budgeting, managing cash expenses, saving funds. The startup began operations in 2019, users have access to the bank's mobile application for devices on Android and iOS. Kuda's headquarters are located in London and Lagos.

History

2021

Raising $55 million, estimated at $500 million

In early August 2021, the digital bank Kuda from Nigeria raised $55 million as part of the series B investment round, the startup's valuation reached $500 million. Kuda reported that the funds raised will be used to expand operations, including the provision of lower-cost and individual services, as well as to prepare for the launch of the service in other African countries.

The funding round, led by existing investors Valar Ventures and the Target Global fund founded by Russians, was also attended by several business angels who had previously invested in Kuda. This round took place four months after the bank raised $25 million as part of the Series A round.

By the beginning of August 2021, Kuda has 1.4 million registered users, which is more than twice as much as during the closing of the Series A round, then the figure was 650,000 users.

Target Global, founded by Russians, has invested in Kuda digital bank

The startup also began to offer credit to its users in the form of an overdraft, for which the company preselects the most active users.

Kuda co-founder and CEO Babs Ogundeyi noted that the overdraft offered by the bank is a unique product. In the second quarter of 2021, the startup qualified more than 200,000 users and issued a loan worth $20 million.

Valar Ventures general partner Andrew McCormack, in a commentary to Techcrunch, explained that the decision to invest in Kuda for the second time is due to the still emerging market potential and the successful development of Kuda.

Kuda is our first investment in Africa, and our initial confidence in the team was supported by its rapid growth over the past four months, he added. - Given that young people are eager to use digital financial services in the region, we believe that Kuda's transformative impact on banking will scale across Africa, and we are proud to continue to support them.[1]

Attracting $25 million of investments, including from Target Global

In mid-March 2021 startup , Kuda from Nigeria raised $25 million as part of the investment round of series A. The round was led by Valar Ventures and a fund founded by Russians, Target Global other unnamed investors also invested in the digital bank.

By mid-March 2021, Kuda provides consumers with services for saving and reasonable spending of money, and the startup introduced overdraft. The company's plan is to use new solutions to continue expanding its loan offerings, creating services for enterprises, supporting new integrations and entering other markets. The company has a banking license from the Central Bank of Nigeria. This means that in addition to the usual capital management services, Kuda can also issue debit cards (in partnership with Visa and Mastercard), manage payments and transfers, provide payroll and loan processing services.

Valar Ventures and Target Global invested in Kuda Digital Bank

Kuda has established partnerships with existing banks, in particular Zenith Bank, Guaranteed Trust and Access Bank, so that customers can visit a physical branch if necessary to withdraw funds or manage deposits.

At the end of autumn 2020, when Kuda completed a $10 million sowing round led by Target Global, the digital bank had 300 thousand customers, after the last investment, the figure more than doubled to 650 thousand^[2]

Notes