Last week, Alex was one of the first reporters with the scoop when Kuda Bank, one of Nigeria’s digital challenger banks raised $25 million
in a Series A funding round. That funding round came months after the bank raised $10 million in November 2020.
One interesting thing that happened in the space of both funding rounds is that Kuda almost doubled its number of users. In November, the company did some talking about how it wants to reach every African in every part of the world.
With its zero fee banking and Africa’s unimpressive smartphone penetration, it seemed like a bit of a stretch. It means that I have often wondered, as I am sure most people have as well, what Kuda’s gameplay is.
There are many examples to follow. Revolut, Chime and N26 provide some useful global examples. But according to Ryan Laubscher, Kuda's COO, the model for Africa may lie in Latin America than Europe.
Kuda’s short-term agenda is for customers to trust the app as their main spending app. As people trust the system to function properly, more will let their deposits stay in the account for longer periods.
The customer grows from using Kuda as a spending account to trusting it as a spending and salary account and perhaps an investment account later.
Tomorrow, Alex will dig into some of these questions and provide some useful analysis on what the next steps for Kuda are. Keep your eyes out for that one!