Nigeria’s digital bank Kuda has become the 7th most valuable bank in Nigeria after its Series B round that took its valuation to $500 million. The recently concluded round was co-led by existing investors Target Global and Valar ventures and backed by PayPal co-founder, Peter Thiel, and comes just months after raising $25 million in its Series A round.
In an official statement by Babs Ogundeyi; Kuda CEO, he said that “We’ve been doing a lot of resource deployment in our operational entity, in Nigeria. But now we are doubling down on the expansion and the idea is to build a strong team for the expansion plans for Kuda”. The digital bank has been working assiduously since it came into the scene. It has worked its way up and has grown to become both a force to be reckoned with and one of the most popular banks in the country. It is therefore no surprise that the digital bank has emerged as the 7th most valuable bank in the country.
Although it is operational in Nigeria, the bank is based in London. Unlike other banks, it does not have physical locations where people go to access its services; it is completely digital, giving it an edge over other banks in Nigeria.
Kuda has grown quite meteorically since it had its last funding round five months ago. As of November 2020, the company said it had 300,000 users and was processing transactions worth an average of $500 million every month. As of March this year, the figure for users had more than doubled to 650,00. The company claims to currently have 1.4 million registered users, all this it achieved within months.
Kuda began as a savings app but has now grown to become a Central Bank-licensed microfinance bank, with the primary aim of helping Nigerians get the best out of their money without overcharging them and is popular for its zero to minimal transaction fees, which has attracted a handful of individuals to its shores.
Kuda plans to utilize the recently acquired funds to build on its new services for Nigeria, as well as prepare for a continental expansion.