Kuda COO Reveals Why Digital Bank Shocked Industry with Two Quick Fundraising
- Kuda raised $35 million within four months after conducting a seed round, as well as Series A fundraising
- The second fundraising round in March shocked the industry due to the timeframe of the first capital infusion
- The company's chief operating officer said several factors motivated Kuda to conduct two rounds in a short time
Ryan Laubscher, Kuda’s chief operating officer (CCO), has revealed why the company conducted two rounds of fundraising in four months. The digital bank had raised $35 million in total during the rounds.
Kuda had first raised $10 million in a seed round in November of last year, before it raised another $25 million in a Series A round at the end of the first quarter this year.
The last round surprised the tech space considering the timeframe between the seed round and the Series A round. The fundraising had placed the company in a strong financial position, but there were still questions trailing the last rounds.
Laubscher told Disrupt Africa there were some factors that motivated the company to raise funds in March 2021. He said one of its investors, Valar Ventures, showed interest in investing in Kuda.
Source: Twitter
The COO mentioned that the global economy also influenced its decision, as the company needed to increase its capital base in order to be financially prepared amid its growth.
It was stated that the firm needed capital to conduct research and development to build products and expand into various credit products. Laubscher said part of the $35 million will also be invested in the recruitment of senior positions.
Meanwhile, Legit.ng had previously reported that WhatsApp has informed users to accept its updated terms of service and privacy policy before May 15, 2021, to avoid getting barred.
WhatsApp stated that users who fail to accept the update will be restricted from chatting and reading messages on the app. They will only be allowed to receive calls and notifications.
According to the messaging app, its users that fail to meet the deadline will be opportune to accept the updated terms and privacy policy.
Source: Legit.ng
