Nigeria’s Kuda raises $10mn to fund expansion

Lagos and London-based FinTech startup Kuda has recently secured a significant $10 million USD in funding to accelerate its growth plans and cater to the increasing demand from customers. The Co-Founder and CEO of Kuda, Babs Ogundeyi, sat down with CNBC Africa's Esther Awoniyi to delve into the details of this capital raise and the strategic deployment of the funds. Ogundeyi expressed his enthusiasm for the successful fundraising, highlighting the confidence investors have not only in Kuda but also in the tech ecosystem in Nigeria as a whole. The fresh injection of capital will support Kuda in enhancing its operational processes, scaling its services, and expanding its customer base. Kuda aims to provide seamless and cost-effective banking solutions to Nigerians and potentially extend its services across Africa. With a current customer base of around 300,000 users, Kuda plans to ramp up its marketing efforts to reach a broader audience and serve more individuals who are yet to experience its innovative digital banking platform. Looking ahead, Kuda is gearing up for a more substantial Series A funding round to support its ambitious expansion plans. Ogundeyi emphasized the capital-intensive nature of the banking industry and the importance of complying with regulatory standards while striving to offer superior financial services to customers. The company envisions a future where Kuda becomes accessible to every African, underpinned by its overarching mission to revolutionize the banking sector on the continent. While traditional banks continue to maintain physical branches, Kuda stands out as a digital-first platform with a microfinance bank license from the Central Bank of Nigeria. Ogundeyi emphasized the importance of embracing digitalization in the financial sector, acknowledging that while physical bank locations may persist, the future lies in digital banking solutions. The COVID-19 pandemic has underscored the significance of robust digital infrastructure, further validating Kuda's vision of providing convenient and secure online banking services. In a landscape where FinTechs are reshaping the banking industry and collaboration between digital innovators and traditional financial institutions is on the rise, Kuda represents a trailblazer in the shift towards a digital-centric banking experience. As consumer preferences evolve and technology continues to drive change, Kuda's commitment to delivering cutting-edge financial solutions positions it at the forefront of the digital banking revolution in Africa.