Nigerian FinTech startup, Kuda, has raised the sum of $1.6 million for the purpose of deepening its inclusion and maintaining the operation of its virtual branches.
The funds were raised in Pre-Series A round led by Haresh Aswani, the Managing Director, Africa Division of the Tolaram Group, Ragnar Meitern and other angel investors.
The startup which is modelled after the operations of a digital bank, primarily operates on smartphones via the prompt of a USSD code, ruling out any need for a building. The side attraction for the bank is that it can afford to charge reduced bank charges, thus providing a big competition for the mainstream banks.
While commenting on the financing, the founder of Kuda Bank, Babs Ogundeyi said, “We profit when our customers are happy to keep their money with us. We do not charge card maintenance fees or account maintenance fees or COT or any other code name that is used to extract fees from customers.“
How the funds will be deployed: Having launched a beta version of its mobile application in August this year, the company has been working to commence full operations after product testing. With the newly generated funds, the bank is looking to commence operations in the final quarter of the year.
The company disclosed that part of the money would be divested into further development of the banking platform to make it more secure. There are also plans in the works to include support for a Lagos and Cape Town-based developer team while eyeing a Pan-African digital-only bank status.
What this means: The FinTech will be able to process large amounts of data in real-time and give customers more control over their financial choices through its real-time disbursement of data.
What you should know: Kuda enters an already crowded fintech market with major players like Piggyvest, Flutterwave, Paga, Paystack to name a few. This is a boost in the potentially revenue-rich market as the country becomes ground zero for payments startups and tech investment in Africa
Brand Repositioning: The startup began as Kudimoney before rebranding to Kuda as a result of the adoption of the name “Kudi” by several fintech startups. Kuda is different from Kudi, a Series A stage Nigerian utility payments startup. Kuda also struck partnerships with three of Nigeria’s Tier 1 banks, GTBank, Access Diamond and Zenith to scale up their branding efforts. Ogundeyi did well to clarify that the banks are partners, not investors.
About the company: Kuda, was founded in 2018 by Babs Ogundeyi and Musty Mustapha. The company runs predominantly on smartphones and via a USSD channel. Even without physical locations (branches), the company claims to be the most connected bank in Nigeria. The startup received a license from the Central Bank of Nigeria in June this year.
House of Reps to make Youths globally competitive
House of Representatives is determined to make the Youths globally competitive.
“Facts don’t lie, a government that has devoted N500bn to youth empowerment every year. There’s Trader Moni, N-Power, and several others, they are all there,” he added.
Gbajabiamila added that the President Muhammadu Buhari’s administration has done a lot about youth empowerment and is ready to do more.
COVID-19: Ogun orders full reopening of churches, mosques, hotels
Religious centres and other public places have been reopened following the success recorded in flattening the curve of COVID-19.
The Ogun State Government has ordered the full reopening of churches, mosques, businesses, hotels, and entertainment centres across the state.
This was disclosed by the State Governor, Dapo Abiodun, in a statement signed by his Chief Press Secretary, Kunle Somorin, via the state’s Twitter handle on Wednesday.
Abiodun stated that the religious centres and other public places had been reopened, following the success recorded in flattening the curve of COVID-19.
According to him, the government is aware that many people are just recovering from the economic hardship imposed by COVID-19, as their activities had been affected by the lockdown, while necessary measures had been put in place to combat the pandemic.
He stated, “In the process of rebuilding the economy, the State Government was irrevocably committed to the successful implementation of the “Building our Future Together” agenda, and would ensure everything possible for people to have increased prosperity that would place the State on a sound footing towards continued development.
“Government would improve on testing, just as it continues to monitor the development and not hesitate to do selective lockdown should there be any flagrant disobedience to the set COVID-19 protocols.”
COVID-19: Ogun orders full reopening of churches, mosque, hotels
Pleased with the drop of COVID-19 infections in Ogun State, @dabiodunMFR, has announced that all hotels, viewing centres, marquees, event centres, suites, guest houses, motels, and establishments providing…. pic.twitter.com/sMiUe3DUt5
— Ogun State Government – OGSG (@OGSG_Official) October 28, 2020
What you should know
Governor Abiodun had closed religious centres, businesses and schools in March, as part of moves to flatten the curve of the coronavirus.
He later announced the reopening of only worship centres and schools in August.
Abiodun pegged the number of worshippers for each service at 200, and insisted that services must not exceed one and a half hours.
CBN reveals framework for the N75 billion Youth Investment Fund
The Nigerian Youth Investment Fund will be funded through the NIRSAL MFB window of the CBN.
The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund.
This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria.
The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion.
The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
Objectives of the scheme:
Improve access to finance for youths and youth-owned enterprises for national development.
Generate much-needed employment opportunities to curb youth restiveness.
Boost the managerial capacity of the youths, and develop their potentials to become the future large corporate organizations.
Explore Data on the Nairametrics Research Website
The fund targets young people between the ages of 18 and 35 years.
Beneficiaries of NMFB, TCF and AgSMEIS loans, and other government loan schemes that remain unpaid are also not eligible to participate.
Individuals (unregistered businesses) shall be determined based on activity/nature of projects subject to the maximum of N250,000.
Registered businesses (Business name, Limited Liability, Cooperative, Commodity Association) shall be determined by activity/nature of projects subject to the maximum of N3.0 million (including working capital).
The tenor of the intervention is for a Maximum of 5 years, depending on the nature of the business and the assets acquired, of which interest rate of not more than 5% under the intervention shall be charged annually.
The Federal Ministry of Youth and Sports Development (FMYSD) will collaborate with relevant stakeholders to identify potential training for training/mentoring.
The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to login to the portal provided by the NMFB to apply for the facility.