Nigerian fintech startup Kuda has closed a $10 million seed funding round to accelerate its growth and meet customer demand. Kuda joins the list of startups that have crossed the $1 billion valuation threshold, including Paystack and Interswitch.

The round is led by Target Global with participation from Entree Capital and SBI Investment, and also involving leading fintech founders and angel investors such as Raffael Johnen, Johan Lorenzen, Brandon Krieg, Ed Robinson and Oliver and Lish Jung. The funds will be used for key recruitments, product development and expansion of operations across Africa.

This is great validation of our business model and our rapid growth to date – having the backing of major European fintech investors and the founders of successful global tech companies. Their financial backing and support will only benefit Kuda and our customers,” said Kuda CEO and Co-Founder Babs Ogundeyi.

With a banking license from the Central Bank of Nigeria (CBN) to launch a full-service digital bank, the startup is raised a $1.6m funding round in September last year to complete its launch. The bank provides comprehensive banking services through its apps, allowing Nigerians to manage a checking account, save money and earn annual interest. Kuda has over 250,000 customers and processes over $500 million in transactions per month.