Kuda Technologies, the digital banking pioneer behind Nigeria’s popular neobank Kuda Bank, has made significant financial progress in 2024, sharply cutting its losses and shifting its operational strategy toward sustainability and profitability. This shift comes as the broader African fintech landscape adjusts to tougher funding conditions and economic realities after years of rapid, cash‑burning expansion.
For the year ended 2024, the UK‑headquartered fintech reported a loss of $5.83 million, a remarkable improvement compared with a much larger $35.11 million loss in 2023. This represents an 84 percent reduction in losses, highlighting a more disciplined financial strategy and stronger cost management.
Kuda’s improved performance stems largely from aggressive cuts in operating expenses and a leaner cost structure. The company slashed other operating costs by 61 percent, reducing these to $17.12 million, while staff expenses dropped by 46 percent to $6.31 million. These changes reflect workforce restructuring and tighter control over discretionary spending, meant to enhance efficiency without sacrificing core banking services.
Management has underscored that stronger cost discipline helped to cushion the impact of Nigeria’s unstable currency. Although the company’s revenue at its Nigerian subsidiary nearly doubled in local naira terms to N21.2 billion, revenue when translated to dollars declined by 15 percent, falling to $18.34 million from $21.61 million in 2023 due to sharp naira devaluation.
The shifting dynamics of customer deposits also reflect broader economic pressures on consumers. Total deposits dropped from N96 billion to N83.20 billion, with retail deposits falling more sharply than business deposits. The decline in personal deposits suggests tighter household budgets in a high‑inflation environment, even as increased deposits from small and medium‑sized enterprises show Kuda may be strengthening ties with higher‑value business customers.
Liquidity was another highlight of the fintech’s 2024 results. Kuda finished the year with $23.54 million in cash, significantly higher than $5.33 million in 2023, giving the company more breathing room as it pursues its long‑term strategy. Total assets remained steady at about $125 million, reflecting a period focused on consolidation instead of aggressive growth through asset expansion.
Looking ahead, Kuda is optimistic about revenue growth. The company is forecasting roughly 40 percent revenue growth, driven not by rapid user acquisition but by disciplined credit expansion and deeper engagement with existing customers. Management aims to expand its base of monthly active users to 1.7 million by the end of 2026 and to double the number of business clients in the same period.
As part of this strategic shift, Kuda is moving away from counting raw user numbers toward prioritising monetisation and meaningful engagement. Registered users grew to 7 million in 2024, up from 6.3 million the previous year, but the company’s focus has clearly shifted toward quality usage and spending behaviours that contribute to revenue and financial stability.
This shift by Kuda mirrors a larger trend across the venture‑backed fintech ecosystem in Africa, where investors are increasingly rewarding efficient, sustainable growth rather than unchecked expansion driven by subsidised services and heavy marketing spend.
Kuda’s turnaround reflects wider economic stress on African tech firms amid weak currencies and reduced venture funding. By cutting costs and enhancing liquidity, Kuda aligns with investor demands for profitability. Its shift from sheer user growth to revenue quality underscores fintechs’ adaptation to tougher macroeconomic conditions and tighter capital markets.
