We have advised Kuda, a Nigerian mobile-first challenger bank, on its $25m Series A funding round led by New York-based venture capital firm Valar Ventures.
With a microfinance banking license in Nigeria, custom-built banking technology and no physical branch network, Kuda has redesigned banking for the Nigerian landscape, currently the biggest single economy in Africa.
The round also includes participation from existing investor Target Global, an international venture capital firm headquartered in Berlin, and several other existing investors. The $25m funding raise follows on from the $10m Kuda raised in October 2020, the largest ever seed round to be raised in Africa.
Commenting on the deal, Corporate Technology Partner Angus Miln, said: "Kuda's objective is to provide every African with access to powerful, appropriate and affordable financial services. Following this deal, 2021 will present new growth opportunities for the Kuda team. It's been great to work with them and we look forward to continuing to support their plans and ambition for the future."
Babs Ogundeyi, CEO and Co-Founder of Kuda, said: "This transaction is very important for us, and the fresh infusion of capital will be used to speed up customer acquisition, expand leadership roles, and build out new features. Angus and the team provided excellent support throughout the process and were key in its success."
The team was led by Corporate Technology Partner Angus Miln with support from Senior Associate Siobhán Langwade, Associate Joshua Gertner and Trainee Rachael Potts.
The investment into Kuda is Valar Ventures’ first foray into Africa, having already backed other well-known financial technology firms around the world. The fund, which was founded by Andrew McCormack, James Fitzgerald and Peter Thiel, has previously invested in Germany’s N26, the UK’s Wise (formerly Transferwise) and Mexico’s Albo.