$10m infusion boosts Kuda’s banking scheme
By John Eche
The infusion of a fresh $10m funding into the coffers of the challenger banking start-up, Kuda is definitely going to serve as a boost to its business activities going forward, some analysts are saying.
Challenger banks are smaller and more nimble banking organisations that essentially deploy digital apps on mobile and web platforms through which they sign on customers and subscribers.
Africa is a mobile-first and, in some cases, a mobile-only region. There are over 350M mobile users, with most having their internet experience entirely on mobile. Brands that understand this and build solutions to cater for these users, have an immense opportunity to scale.’
On their part, the team at Kuda is upbeat about the development:
‘“We are very excited for Kuda’s next phase. It is a great validation of our business model and rapid growth to date – to have the support of both Europe’s leading fintech investors and founders of successful global technology businesses. Their financial backing and support will only benefit Kuda and our customers,” affirmed the chief executive officer and co-founder of Kuda, Babs Ogundeyi.
However, there is no consensus about how much incursion the likes of Kuda can make in the broader financial landscape, more so when the Nigerian banking system has grown enormous muscle over the years.
This is more so when competing brands in the traditional banking space like Access, GTBank and GTBank have lately been taking measures to boost their digital imprints and capacity to engage in mobile and digital related transactions.
Kuda, which opened shop in 2016, secured a banking licence last year from the Central Bank of Nigeria.
CBN Governor, Godwin Emefiele