Kuda, the money app for Africans after a total investment of over $90 million, is launching new offices in the United Kingdom (UK) as part of a major global expansion drive.
FS News reports that A statement by the media consultant to the company, said that the launch would among other things, enable hundreds of thousands of UK-based Nigerians to combat high remittance costs on large transfers, which currently average out at eight per cent – significantly short of the United Nations (UN) Sustainable Development Goal target of 3 per cent.
The businesses’ vision, the statement hinted 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 annually, Kuda is set to save UK Nigerians millions of pounds.
Parent company Kuda Technologies Limited was founded in 2019 by two Nigerians, Babs Ogundeyi and Musty Mustapha.
Its Nigerian business rapidly expanded to become the country’s number one money app, with nearly five million customers.
Remittance accounts for nearly 1 per cent of Nigeria’s total Gross DomestIC Product (GDP), but the UK to Nigeria payment rail has been notoriously unreliable, with high fees.
Kuda’s digital-only approach and unique local market knowledge has allowed it to launch a service that drives prosperity for both senders and recipients.
Kuda’s UK entity would also offer a mobile wallet, virtual and physical cards, local UK transfers and direct debits, the statement said.
Babs Ogundeyi, the Co-founder, Kuda, while commenting on the launch of the UK app, said Africans in the UK are faced with myriad of challenges when it comes to financial services.
Ogundeyi lamented that Africans in the diaspora are compelled to limit each transfer to a few hundred pounds to avoid losing money or face escalating exchange rates with bigger transfers.