NIGERIAN ONLINE BANK, Have Raised $1.6 Million!


Nigerian Online Bank

The only Nigerian online bank – Kuda – yesterday announced that it (the digital retail bank) has been able to raise 1.6 million dollars in pre-seed investment funding, with participation from Startupbootcamp, RagnarMeitern, and HareshAswani which includes other investors. So sorry, the news is coming late.

Kuda is a fintech startup with locations in Lagos and London, an online bank whose mobile platform does not require monthly charges when accessed on the basis of one checking his or her account balance. Moving from here, the bank offers free debit card and intends to offer people-to-people payment options and consumer savings on its platform.

Speaking of the bank’s credibility, it received its operational license from the Central Bank of Nigeria, distinguishing ‘Kuda’ from other fin-tech startups. This was confirmed by a representative of Central Bank of Nigeria while communicating with Techcrunch – said, “As far as I’m aware there is no other digital bank in Nigeria that has a micro-finance license”. While in another development, the bank recently launched the beta version with respect to its mobile finance platform.

Meanwhile, the Nigerian online bank – Kuda – on its website extended its gratitude to those that bought into the bank’s idea by investing with their money.

I reserve my special gratitude for everyone who bought into Kuda early, bugs included, and trusted us with their money by signing up and using the bank”, an official stated.

While in the same vein, the bank officials responded based on the fact that they weren’t sure of the public reaction, based on the first version of Kuda. Regarding the latest development, Kuda’s team made a promise based on the money realized. And stating that,

We’ll use this money to launch out of beta later this year, our immediate priorities are continuous product improvement and excellent customer support, so the funds we’ve raised will be used to expand our software development and customer support teams and equip them with the best tools available”.

In a bid to go from beta to live launch, the Nigerian online bank intends to structure its banking platform and also support its team of developers in Lagos and Cape Town. While at the moment, a correspondent relationship has been established between ‘Kuda’ and top financial institutions in Nigeria, such as Access Bank, GT Bank, and Zenith Bank.

Responding to whether the bank has plans of rendering its service in other African countries, Ogundeyi said:

It’s Nigeria for now, but the plan is build a Pan-African digital-only bank”.

Also with regards to a number of factors, the bank CEO Babs Ogundeyi claims ‘Kuda’ would confidently scale and compete in Nigeria. However, he also pointed at few factors with much expectation, adding that,

We look to be the next generation bank where you can do everything – savings, payments and transfers, and also the one that is least expensive”. Also, Kuda claims its bank ATMs can be used in any of the branches without a fee, either for depositing or withdrawal of funds.

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