Costanoa Ventures Secures $15m for Nigerian Digital Bank Umba

Umba, a Nigerian startup in digital banking, has raised $15m in Series A funding. This will allow it to provide financial services to the poor.

The funding round follows a $2million seed round in 2020. This brings the total received funding to $17.5 Million. The funding round was managed by Costanoa Ventures Tom Blomfield, co-founder Monzo, is also a backer of Nubank. He was previously backers Lachy Groom as well as ACT Ventures. Lux Capital. Palm Drive Capital. Banana Capital. Streamlined Ventures.

The new funding will allow the company to test out interoperable digital banking experience across African markets and its services in Egypt, Ghana and Kenya.

Founded by Barry O’Mahony and Tiernan Kennedy in 2018, Umba is an African digital bank, offering free bank accounts and financial services to customers. Customers can manage their finances in one app thanks to the startup’s ecosystem of financial services.

TechCrunch Interview Tiernan Kennedy said, “For us, we designed core banking systems from the ground up and can deliver a customized experience for the customer at the drop of a hat in both banking and mobile money markets.

“We can take in all that open banking data and underwrite at scale with these different fragmented payment types and data types. What that means for us, in practice, is that we’re multi-currency, we can go multi-country, we can do all different payment types. It takes time. But then when you get your ability to move extremely fast against competitors.”

Tiernan also announced that the startup would unveil new product features in the next 18-months, including savings accounts and debit cards.

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