Kuda, a Nigerian fintech firm, revealed Monday that it has closed a $55 million Series B investment round led by Valar Ventures and Target Global, with a $500 million value.
Kuda, a microfinance bank registered by the Central Bank of Nigeria, was founded in 2019 by Babs Ogundeyi and Musty Mustapha.
The money comes on the heels of the startup’s impressive early growth.
In March, Kuda raised $25 million from Valar Ventures, the company’s co-founder, as well as Target Global and other investors.
The monies raised through the bank’s London subsidiary will be used to develop the bank’s Nigerian operations and prepare for its expansion into other African countries, according to the bank.
According to Techcrunch, Kuda currently has 1.4 million registered users, up from 650,000 when it announced its Series A round of $25 million funded by Valar Ventures.
“In our operational entity in Nigeria, we‘ve been undertaking a lot of resource deployment. MrOgundeyi was reported by TechCrunch as saying, “But now we’re doubling down on the expansion, and the idea is to establish a strong team for Kuda’s expansion plans.”
“We still regard Nigeria as a key market, and we don’t want to divert our attention away from that, therefore we don’t want to disturb those activities too much. It’s a competitive market with a lot of players. It’s one we believe we need to have a firm grip on. As a result, this investment will be used to invest in expansion and gain more experience in the company in terms of expansion.”
“We believed that Babs and Musty (Mustapha, the co-founder and CTO) are ambitious on another level,” said Ricardo Schäfer, a partner at Target who led the round for the startup. It was always about developing a pan-African bank for them, rather than just a Nigerian leader.”
“From the outset, the potential of banking over 1 billion people really stuck out for me,” he remarked.
“Kuda is our first investment in Africa, and its tremendous growth over the last four months has confirmed our original faith in the team,” he said. “With a young population hungry to adopt digital financial services in the region, we believe Kuda’s disruptive effect on banking will grow across Africa, and we’re happy to continue supporting them,” Andrew McCormack, a general partner at Valar Ventures, said.