Kuda, a digital bank startup that operates in Nigeria has raised a US$25 million Series A funding led by Valar Ventures, the firm co-founded and backed by Peter Thiel, with Target Global and other unnamed investors participating.
Founded in 2017 by Babs Ogundeyi and Musty Mustapha as Kudimoney and later rebranded, Kuda, is the only digital-only bank in Nigeria with a standalone license from the Central Bank of Nigeria (CBN) allowing it operate as a micro-finance bank.
Kuda offers checking accounts with no monthly fees allowing payments, transfers and a free debit card (in partnership with Visa and Mastercard).
This round follows the US$10 million Seed round funding raised in November 2020, described as the largest seed round by an African startup.
At that time, Kuda was doing more than 300,000 customers, both individual consumers and small businesses and processing US$500m+; it currently has more than 650,000 customers and recently processed US$2.2 billion transactions in Feb.