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Rise of Kuda Bank: The Neobank Revolutionizing Nigerian Banking

Introduction to Kuda Bank

The world of banking is constantly evolving, and Kuda Bank is at the forefront of this change. Kuda Bank is a FinTech company that has become a leading neobank in Nigeria.

The bank offers a range of products and services that cater to the needs of modern banking customers. This article will explore the benefits of Kuda Bank and the rise of the innovative neobank.

Benefits of Kuda Bank

One of the primary benefits of Kuda Bank is that they do not charge account management fees or account maintenance fees. This means that customers can keep their money in the bank without worrying about additional charges.

In addition to this, clients can enjoy the benefit of earning interest on their saved money in the account. Another major benefit of Kuda Bank is that customers can apply for loans at relatively lower interest rates compared to traditional banks.

In addition, they offer business banking services that cater to the specific needs of business owners. With these services, business owners can enjoy seamless transactions, as well as enjoy customer-centric services that are tailored to meet their specific business needs.

Detailing the Rise of Kuda Bank

Founding of Kuda Bank

Kuda Bank was founded by Babs Ogundeyi and Musty Mustapha. Both men had previous entrepreneurial endeavors, which they drew from when establishing the bank.

Their extensive knowledge of the Nigerian market and passion for delivering superior customer service played a critical role in the success of Kuda Bank.

Launch of Kudimoney

Before Kuda Bank, Babs and Musty had launched Kudimoney, which was a lending platform that offered loans to people with lower credit scores. While Kudimoney was a successful venture, the co-founders saw a need for a more comprehensive banking solution, which ultimately gave rise

to Kuda Bank.


to Kuda Bank

In 2019, after obtaining a banking license from the Central Bank of Nigeria, Kudimoney underwent a total rebranding and became Kuda Bank. This transition paved the way for Kuda Bank to become a free-to-use digital bank in Nigeria.

This move attracted a lot of attention, and Kuda Bank soon grew in popularity, quickly becoming a household name in Nigeria.

Expansion and Funding Rounds

Kuda Bank has undergone several rounds of funding, starting with a seed round that brought in $1.6 million. In 2020, the bank secured a Series A funding from international payment company Payoneer, and a Valar Ventures-led Series B funding round that brought in $25 million.

As of 2021, Kuda Bank has over 2 million customers, and its growth has shown no signs of slowing down.

Growth Strategy

Kuda Bank’s growth strategy has been centered around innovative marketing efforts, hiring the right personnel, and creating a strong brand presence. In 2021, the bank announced that it had appointed singer and songwriter, Oladapo Daniel Oyebanjo (popularly known as D’Banj), as its brand ambassador.

This move helped to increase the bank’s visibility among younger people, who make up a significant portion of the bank’s customer base. Kuda Bank also hires highly qualified and experienced personnel to ensure that they continue to provide their clientele with top-notch customer experience.


Kuda Bank’s impressive growth rate and innovative approach to banking makes it a game-changer in Nigeria and the world over. The bank’s focus on customer satisfaction, competitive services and products, and unique marketing strategies has helped set it apart from other traditional banking institutions.

As Kuda Bank continues to grow, it is poised to become a leading digital-first bank in Nigeria and beyond.

Ownership of Kuda Bank

Kuda Bank is a privately-owned neobank that offers modern and innovative banking solutions to its customers. In this article, we will discuss the different aspects of Kuda Bank’s ownership, including private ownership, equity, investors, and more.

Private Ownership

Unlike traditional banks that are publicly traded on the stock market, Kuda Bank is privately owned. This means that the bank is owned by private individuals who have invested their money in the company.

The private ownership structure gives the founders and investors more control over the decisions made by the bank, including the direction it takes and the products and services it offers.

Equity and Investors

Kuda Bank has been able to raise significant amounts of funding through equity investments. In 2019, the bank raised $1.6 million in seed funding, which helped them secure a banking license.

Two years later, the bank went on to raise $55 million in Series B funding, led by Valar Ventures. Other investors in Kuda Bank include Paystack, Platform Capital, and Target Global, amongst others.

As Kuda Bank continues to grow, the equity investments have become even more substantial, with the bank’s post-money valuation reaching over $311 million. This increasing valuation has not only helped the bank attract investors but has also given the bank more leverage when negotiating with existing shareholders.

Founder’s Equity

Babs Ogundeyi and Musty Mustapha, the co-founders of Kuda Bank, are the majority owners of the neobank. During the initial fundraising rounds, the co-founders gave up a significant portion of their equity to secure the funding they needed to start the bank.

As the bank has continued to grow, the co-founders have been able to secure secondary investments that have helped them recover some of their initial equity. The co-founders have also expressed their intention to take the company public and have been making plans to do so in the near future.

Going public would allow Kuda Bank to raise additional funds by issuing shares on the stock market. Once the bank goes public, it is expected that Babs and Musty will retain a substantial percentage of ownership in the bank, given their roles as co-founders and the significant contribution they have made towards its growth.

Future Ownership Percentage Upon Going Public

The co-founders’ ownership percentage in Kuda Bank is expected to change once the bank goes public. Currently, they are the majority owners of the bank, but going public would mean that shares of the bank would be available to the public.

This would dilute the ownership percentage of the existing shareholders, including Babs and Musty. However, there are several ways for the co-founders to retain a substantial percentage of ownership in the bank even after going public.

One common approach is for insiders to receive a certain number of shares that are not available to the public as part of their remuneration package. This would allow the co-founders to maintain a sizeable ownership percentage, even as new investors enter the picture.


In conclusion, Kuda Bank is privately owned, and its ownership structure has played a crucial role in the bank’s success. Private ownership has allowed the company to make strategic decisions without the constraints of public scrutiny.

In addition, the bank’s equity investments have played a critical role in its growth and expansion. As the bank continues to thrive, it will be interesting to see how the ownership structure evolves and how the co-founders retain their ownership in the bank as it goes public.

Kuda Bank is a leading neobank in Nigeria that offers innovative and customer-centric banking solutions. The bank is privately-owned and has raised significant amounts of funding through equity investments from various investors.

Founders Babs Ogundeyi and Musty Mustapha are the majority owners of the bank, and their ownership percentage is expected to change once the bank goes public. However, there are several ways for them to retain a significant percentage of ownership.

Kuda Bank’s success story showcases the importance of private ownership and equity investments in the modern banking industry.

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