Kuda, the Nigeria-operating London-headquartered fintech challenging traditional banks by offering mobile-first and personalised banking services, is doubling down on its global expansion plans. The company, having secured a payment license in Canada earlier this year, is set for a Q3 2024 launch of its multi-currency digital wallet in the country. This service targets the large African diaspora population in Canada, with an estimated Nigerian contingent of over 100,000.
With the launch of our digital wallet in Canada, we will offer Africans living in the country, including recent migrants, a simple, transparent, and cost-effective way to send money home, said Babs Ogundeyi, Group CEO and founder of Kuda. Ogundeyi emphasizes the importance of remittance services, stating they improve their financial well-being and strengthen their connections to their countries of origin.
The digital bank has seen some success since launching in Nigeria in 2019. Kuda claims to have up to 5 million users, more than thrice the number it had during its USD 55 M Series B round in August 2021; money it had said it raised to enter into other African countries like Ghana and Uganda, though expansion into those countries is yet to materialise.
This Canadian launch follows Kudas initial foray outside of Africa in November 2022, targeting Nigerians in the UK with a remittance product. The companys strategy hinges on offering a cheaper and more convenient alternative to traditional money transfer services. Kudas digital wallet allows users to add funds in various currencies, including GBP, EUR, USD, and CAD, for transfers to African countries.
The company sees a significant business opportunity. The remittance sector is a major draw, with remittance inflows to Africa reaching an estimated USD 100.1 B in 2022. By targeting markets with large African diaspora populations, like Canada and the UK, Kuda is positioning to capitalise on this growing demand and boost its foreign exchange revenue.
