African challenger Kuda cuts 5% of workforce
Africa-focused challenger bank Kuda has laid off 5% of its 450-strong workforce, according to TechCrunch.
Around 23 people are set to lose their jobs at the bank despite the firm hiring a number of designers in July, TechCrunch reports.
Kuda says cuts were made across growth, marketing and product departments in the company.
In August last year, Kuda raised $55 million in a Series B funding round valuing the firm at $500 million.
The challenger, based in both Nigeria and the UK, joins a long list of fintechs and financial institutions downsizing and consolidating amid the wider gloomy economic environment.
In August, Aussie crypto exchange Swyftx was set to lay off 74 employees – 21% of its workforce –while Canadian growth capital firm Clearco cut 125 jobs as it faces up to “significant headwinds” in the economy.
In recent months, stock trading app Robinhood has said it will cut 23% of staff, digital challenger bank Varo laid off 75 employees in order to cut costs and Canadian wealthtech Wealthsimple shed 12.6% of its workforce citing market volatility.
Founded in 2017, Kuda calls itself “the bank of the free”. It offers a no-fee virtual account and accompanying debit card.
The bank is insured by the Nigerian Deposit Insurance Corporation and licensed by the Central Bank of Nigeria.
It uses a core banking system dubbed “Nerve”, which the bank built in-house and deployed in August 2020.