Kuda, a digital bank startup that operates in Nigeria has raised a US$10 million seed investment funding.
According to TechCrunch, the seed round was led by Target Global, with Entrée Capital and SBI Investment also participating, along with a number of other notable individual entrepreneurs angels including Raffael Johnen (founder of Auxmoney), Johan Lorenzen (founder of Holvi), Brandon Krieg/Ed Robinson (founders of Stash), and Oliver and Lish Jung (angel investors in Nubank, Revolut, and Chime).
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).
“We have built the core banking services in-house so we own the full stack,” he said. “It means we don’t have to piggyback on another financial institution. We may choose to partner on certain products but we don’t have to.” Says CEO Babs Ogundeyi.
In 2019 Kuda raised US$1.6 million in a pre-seed round to launch a beta of its product.
Kuda has more than 300,000 customers, both individual consumers and small businesses and processing US$500m+ worth of transactions monthly.