As remittances to Africa increase, several firms are finding ways to make it easier, cheaper and more convenient to send money home or pay for utilities. We’ve seen a number of fintech startups rise to bridge this gap, each promising to ease the burden on customers.
Kuda, a London-based startup operating in Nigeria and focusing on the larger African market announced last week that it has officially started operations in the UK market.
The company, which started operations in 2019 says that its platform has nearly 5 million users. Last year, the company successfully raised $55 million in Series B to facilitate entry into Ghana and Uganda, although this expansion is yet to take place. The startup has so far raised more than $90 million from investors from global-renown investors.
Kuda’s CEO and Co-Founder Babs Ogundeyi said, “Africans in the U.K. are faced with barrier after barrier when it comes to financial services — from challenges setting up accounts to prohibitive and inconsistent fees on meaningful transfers. They are forced to limit each transfer to a few hundred pounds to avoid losing money or face escalating exchange rates with bigger transfers.
Ogundenyi says his company aims to transform the way Africans in the UK access financial services, adding that services will first roll out in Nigeria and then to the entire continent.
Kuda is getting into a space that has other players such as Grey Finance, PayDay, Lemonade Finance, Kyshi, Tanzania’s NALA (U..K. to East African countries), and American-based WayaPay which recently launched remittance services to Kenya.