According to TechCrunch, Kuda, a challenger bank with an emphasis on Africa, has let go 5% of its 450 employees.
Despite employing several designers in July, the bank is expected to lay off about 23 employees, according to TechCrunch.
According to Kuda, the company’s growth, marketing, and product departments all experienced cuts.
Kuda raised $55 million in a Series B investment round in August of last year, valuing the company at $500 million.
The challenger, which is headquartered in both Nigeria and the UK, follows a lengthy list of fintechs and financial institutions that are consolidating and shrinking in the midst of the general depressing economic climate.
Swyftx, an Australian cryptocurrency exchange, planned to lay off 74 workers in August, or 21% of its workforce, and Clearco, a Canadian growth capital business, slashed 125 positions as a result of “severe headwinds” in the economy.
In recent months, digital challenger bank and stock trading app Robinhood have announced workforce reductions of 23%. Varo fired 75 workers in an effort to reduce costs, and Canadian wealthtech Wealthsimple reduced its headcount by 12.6% due to market instability.
Kuda describes itself as “the bank of the free” and was founded in 2017. It provides a debit card and fee-free virtual account.
The Central Bank of Nigeria has granted the bank a license and insured it through the Nigerian Deposit Insurance Corporation.
It makes use of the “Nerve” core banking system, which the bank in-house developed and introduced in August 2020.
