Kuda Bank, a Nigerian fintech startup has raised $55 million in Series B funding to expand into other African countries. It also intends to introduce new product lines in Nigeria.
After raising a $25 million Series A in March 2021 and a $10 million seed round in November 2020, the funding was made at a $500 million valuation. The total raise is $91.6 million, with a $1.6 million pre-seed in September 2019 and a $15,000 pre-seed in 2018.
Previous investors Valar Ventures and Target Global led the round. Other investors included Strategic Business Investor (SBI) Investment from Japan and previous angel investors.
The company was founded in 2018 as Kudimoney and changed its name to Kuda just before raising $1.6 million in 2019. Babs Ogundeyi and Musty Mustapha, CTO, co-founded the company, which started out as a lending platform before evolving into a digital bank.
Kuda now has 1.4 million registered users, which is more than double the number it had in March, when it only had 650,000.
Kuda intends to use the funds to expand its new Nigerian services and prepare for a continental expansion. Kuda aims to create a new take on banking services for “every African on the planet,” according to co-founder and CEO Babs Ogundeyi.