Kuda Technologies, backed by Target Global and the parent company of Kuda Bank, has recently obtained payment licences in Tanzania and Canada, marking a significant step in its expansion strategy across Africa and the global market.
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These licences will enable Kuda to offer remittance and multi-currency wallet services to both Tanzanian and Canadian customers, directly competing with other startups targeting Africans in the diaspora like LemFi and Nala.
This expansion into the remittance market is not new territory for Kuda. In 2022, the company secured a payment licence in the United Kingdom and launched a subscription-based remittance service. However, this offering has since been discontinued, suggesting that the market may not have been ready for such a model. As Kuda ventures into Canada and Tanzania, it is likely to explore alternative approaches to remittance services.
The remittance market is increasingly attractive to investors, particularly as more Nigerians and Africans seek opportunities abroad. Nigeria, in particular, has become a significant source of immigration to Canada, with over 22,000 Nigerian immigrants welcomed in 2022 alone. Additionally, the influx of remittance inflows into Africa reached an estimated $100.1 billion in 2022, highlighting the importance of this market segment.
By targeting countries like Canada and the UK, where the Nigerian migrant population continues to grow, Kuda has the opportunity to capitalize on foreign exchange revenue, especially amidst challenging FX rates that have impacted the profitability of many startups. With its latest expansion, Kuda aims to leverage these growing markets to further solidify its position in the fintech landscape.
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