Kuda, a Nigerian digital banking startup, has successfully raised $55 million in a Series B funding round, bringing its total funding to over $80 million. The round was led by existing investors, including Target Global, as well as new investors such as the U.S.-based investment firm, Accel Partners.

Kuda, founded in 2019, positions itself as “the bank of the free,” providing users with zero-fee banking services and a mobile app that allows customers to manage their finances efficiently. The platform has gained significant traction in Nigeria, boasting over 1.4 million registered users by mid-2021.

In a statement following the funding announcement, Kuda CEO Babs Ogundeyi expressed his enthusiasm for the support received from investors. “This investment will allow us to expand our product offerings and improve the customer experience. We aim to make banking more accessible for every Nigerian, particularly the unbanked population,” Ogundeyi stated.

The Series B funding will be utilized to enhance Kuda’s technology infrastructure, expand its engineering team, and develop new features aimed at improving customer engagement. The company plans to invest in marketing initiatives to increase brand awareness and attract more users.

Kuda differentiates itself from traditional banks by offering a range of digital banking services without the burden of monthly fees or hidden charges. Users can open accounts through the mobile app in minutes, access budgeting tools, and earn interest on their savings.

The Nigerian fintech landscape is experiencing rapid growth, driven by the increasing adoption of mobile banking and digital financial services. According to a report by McKinsey, Nigeria’s fintech sector is expected to reach $543 billion by 2025, creating significant opportunities for innovative companies like Kuda.

Kuda’s successful funding round not only highlights the potential for digital banking in Nigeria but also underscores the growing interest from international investors in African fintech. With this latest investment, Kuda is set to further solidify its position as a leading player in Nigeria’s dynamic digital banking space.