Kuda Bank Raises Fresh $25million To Facilitate Digital Payments In Africa

Nigerian fintech startup Kuda has raised $25 million in a Series A funding round to continue building out its specific ambition: to provide a modern banking service for Africans and the African diaspora, or as co-founder and CEO Babs Ogundeyi describes them, “every African on the planet, wherever you are in the world.”

The funding round was led by New York-based venture capital, Valar Ventures, with participation from existing investor Target Global, an international venture capital firm headquartered in Berlin, Germany, and several other existing investors.

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The funding round follows Kuda’s previous $10million raise in November 2020, a feat cheered for being the largest seed round by an African startup.

At the time, the company said it had 300,000 customers (which was a mix of individuals and sole-proprietor businesses) and was processing an average of $500 million worth of transactions per month.

This is the first time that Valar Ventures which has invested in a number of fintech startups, including N26, the UK’s Wise, and Mexico’s Albo has backed an African startup.

Kuda currently provides services for consumers to save and spend money, and it has recently introduced overdrafts (essentially revolving credit for individuals). Ogundeyi said in an interview that the plan is to use these new funds to continue expanding its credit offerings, to build out services for businesses, to add in more integrations and to move into more markets.