Kuda, the money app for Africans,is expanding to the U.K. by offering a remittance product to Nigerians in the diaspora as part of a major global expansion drive, following a total investment of over US$90 million.
The neobank has recorded some success since launching in Nigeria in 2019. Kuda claims to have up to 5 million users, more than thrice the number it had last August during its $55 million Series B round, money it raised to enter into other African countries like Ghana and Uganda this year.
In a statement by the company, the launch will among other things, enable hundreds of thousands of UK-based Nigerians to combat high remittance costs on large transfers which currently average out at 8% – significantly short of the UN Sustainable Development Goal target of 3%.
The business’ aim is to give all Africans globally access to friction-free and affordable financial services, connecting the diaspora with Africa and increasing financial inclusion. Kuda is entering the UK market (through its UK-based subsidiary – Kuda EMI Limited) charging a flat fee of only £3 with a transfer limit of £10,000. With over £3 billion sent from the UK to Nigeria every year, Kuda is set to save UK Nigerians millions of pounds.
And while international money transfer operators such as WorldRemit and Remitly still control the lion’s share of the transactions in the U.K.-Nigeria corridor, African consumer fintechs are holding down their own via the fees they charge, most of which are commissions from transactions, on top varying exchange rates