Kuda Speaks on Raising $100m as CBN Moves to Reverse Ban on Customer Enrollment

• Kuda Technologies said it was able to raise close to $100m in funding over the past five years of its operations
• Its CEO pointed out that Kuda Technologies has its headquarters in the UK to make finance more accessible
• Meanwhile, the CBN recently announced that it will soon reverse its decision and allow mobile money operators, including Kuda

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Babs Ogundeyi, the chief executive officer of Kuda Technologies, revealed on Wednesday, May 29, that the company had raised about $100 million in capital in the last five years.

Punch reported that Ogundeyi revealed the information during the GITEX Africa conference in Morocco.

“We launched in Nigeria in August 2019 and have raised close to $100m within that period,” Ogundeyi said during the panel session “Beyond the Starting Lane: Navigating Advanced Funding.”

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Ogundeyi highlighted the difficulties African startups face in attracting foreign investment due to investors’ unfamiliarity with the local environment.

He noted that Kuda Technologies is headquartered in the UK to facilitate easier access to funding, as most capital comes from Western investors.

“We are headquartered in the UK, but we are Africa-focused, and there is a reason why we are headquartered in the UK. It’s very much related to access to funding. The capital comes primarily from the west. It’s easier to attract capital in those jurisdictions,” Ogundeyi explained.

He emphasized that securing funding is a rigorous process, especially in Africa, where trust levels are low.

CBN gives update on account opening

Legit.ng had earlier reported that the CBN suspended fintech firms from opening new customer accounts, citing irregularities with its Know Your Customer (KYC) policy.

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In a new report, the Central Bank of Nigeria (CBN) announced that it will soon reverse its decision and allow mobile money operators, including fintech firms OPay, Palmpay, Kuda Bank, and Moniepoint, to resume enrolling new customers within the next few months.

CBN governor, Olayemi Cardoso, disclosed this at the end of the apex bank's 295th Monetary Policy Committee (MPC) in Abuja on Tuesday, May 21, 2024.

Kuda hits new record

Legit.ng reported that Kuda Microfinance Bank is celebrating hitting a new record of 7 million in total number of customers.

The Nigerian neo-banking app announced that its total transaction value hit N55.8 trillion since it started operations in 2019.

In addition, it also said it is unravelling many new packages for its customers, including new salary loans and others.

Source: Legit.ng