Kuda Bank said to close $10m seed round as it looks to boost financial inclusion in Nigeria

Kuda Bank, an African challenger bank, has reportedly raised $10m in its seed round.

Target Global served as the lead investor to the round, with participation also coming from Entrée Capital and SBI Investment, according to a report from TechCrunch. Contributions also came from FinTech founders and angel investors, including Auxmoney founder Raffael Johnen, Stash founders Brandon Krieg and Ed Robinson, and Holvi founder Johan Lorenzen.

Whilst the bank offers some small business banking services, in the new year, it is hoping to launch a more in-depth offering.

The FinTech, which is based in Nigeria, is a mobile-first banking platform for consumers and small businesses in the country.

In a previous announcement from the company, Kuda CEO and co-founder Babs Ogundeyi said, “We want to be the go-to digital bank in emerging markets. However, our immediate focus is our launch country, Nigeria.”

The bank was founded in 2017 and has the ambition of giving everyone financial freedom. To help boost financial inclusion, it launched its offering with no fees.

Users of Kuda get access to the mobile banking services with no fees attached to card maintenance, ATM withdrawals, bank withdrawals, account maintenance, transfers to other banks, or deposits.

A Series A round is allegedly in the works.

Kuda launched its services in September 2019 and has already attracted more than 300,000 customers and processes around $500m in transactions each month, the article reports.

Prior to this investment, the bank raised $1.6m in its pre-seed round.

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