Kuda expands to UK

Wednesday 9 November 2022 13:00 CET | News

Kuda, a UK-based and Nigerian-operating startup, has expanded to the UK by offering a remittance product to Nigerians in the diaspora.

From an administrative point of view, Kuda’s UK. move is straightforward. The startup is a UK-based fintech that offers financial services to Africans within and outside Africa. As such, services provided to Nigerian users are facilitated via its subsidiary, Kuda MFB Limited. On the other hand, Kuda EMI Limited is the other subsidiary in charge of the newly launched services to Nigerians in the UK.

In addition to remittance, Kuda intends to provide direct debits and local transfers to Nigerians in the UK down the line.Unlike its remittance product, which might have been built in-house, Kuda, like many neobanks, will rely on a third party, usually a Banking-as-a-Service (BaaS) platform, to provide these financial services. The platform in question for Kuda is Modulr, an embedded payments platform for digital businesses to offer a mobile wallet, virtual and physical cards, local UK transfers and direct debits.

More information about Kuda

Kuda claims to have up to 5 million users, more than three times the number it had in August 2021 during its USD 55 million Series B round, money it raised to enter into other African countries like Ghana and Uganda in 2022.

Kuda, a UK-based and Nigerian-operating startup, expands to the UK by offering a remittance product to Nigerians in the diaspora.

In March 2021, Kuda has raised USD 25 million in funding to continue building out its ambition: to provide a modern banking service for Africans and the African diaspora.

In June 2021, the Nigerian fintech firm received a banking license from the Central Bank of Nigeria (CBN) to launch as a full service digital 'No-Fee' bank raising USD 1.6 million in September 2021 to complete its launch. Since then, Kuda has largely kept to its promise of helping users achieve their financial goals, offering complete control over all expenditures and a banking approach that is exclusively linked to the real economy. Today, Kuda serves over 250,000 customers and processes over USD 500 million of transactions monthly.

Nigerian remittance market

Moreover, Nigeria is sub-Saharan’s largest inbound remittance market and among the top ten largest globally. The remittance business accounts for nearly 4% of the country’s GDP as of 2020. Yet, sending money from places like the US and UK to Nigeria remains invariably expensive. For instance, it costs the sender 3.7% of the sent amount to send money from the UK to Nigeria.

Nigeria’s diaspora remittance inflow is set to increase to USD 29 billion in 2022 because of higher food prices and the continued adoption of official bank channels, according to the World Bank. According to the global bank, migrants from the country are likely to send more money home to help with the hike in the prices of staples.

The World Bank said remittance inflow to Sub-Saharan Africa was USD 49 billion in 2021, with Nigerian contributing USD 19.2 billion to the total inflow.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: digital banking, remittance, startup, expansion, fintech
Categories: Banking & Fintech
Companies: Kuda
Countries: United Kingdom
This article is part of category

Banking & Fintech


Discover all the Company news on Kuda and other articles related to Kuda in The Paypers News, Reports, and insights on the payments and fintech industry: