…Eyes 1.7m active users by 2026
Kuda Technologies, the UK-headquartered parent of Nigerian digital lender Kuda Bank, sharply reduced its losses in 2024 as the fintech pivots from aggressive expansion to a tighter focus on financial discipline and profitability.
The company reported a loss of $5.83 million for the year, an 84 percent improvement from the $35.11 million loss recorded in 2023, according to financials seen by BusinessDay.
The turnaround reflects deep cost cuts and a strategic recalibration as Nigeria’s largest homegrown neobank grapples with currency volatility and a tougher funding environment for fintechs.
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The results signal a broader shift across Africa’s venture-backed fintech sector, where investors are increasingly rewarding efficient growth over customer acquisition at all costs. For Kuda, which has raised more than $90 million from investors including Valar Ventures and Target Global, the narrowing of losses puts the lender closer to profitability, still elusive for many of its peers.
Costs cut, structure tightened
Cost containment was the primary driver of the improved bottom line. Other operating expenses fell 61 percent to $17.12 million, while staff costs dropped 46 percent to $6.31 million, underscoring a leaner operating structure following workforce reductions and tighter spending controls.
The cost discipline helped offset the impact of Nigeria’s currency devaluation on Kuda’s dollar-denominated financials. While revenue at the Nigerian subsidiary nearly doubled in naira terms to N21.2 billion, group revenue declined 15 percent in dollar terms to $18.34 million from $21.61 million in 2023. Management attributed the drop to the sharp weakening of the naira, which eroded the value of local earnings when consolidated at the group level.
Deposit mix reveals shifting dynamics
Despite the operational gains, pressure is emerging on Kuda’s balance sheet. Total customer deposits fell to N83.20 billion from N96 billion a year earlier, reflecting the strain on consumer liquidity in an inflation-hit economy.
Retail deposits declined sharply to N47.43 billion from N67.34 billion, suggesting tighter spending power among Kuda’s core mass-market users. In contrast, business customer deposits rose to N21.27 billion from N14.23 billion, pointing to growing traction among small and medium-sized enterprises as the bank tilts toward more stable, higher-value clients.
Liquidity strengthened
Kuda ended the year with a stronger liquidity position, holding $23.54 million in cash, up from $5.33 million in 2023. Total assets were largely unchanged at $125 million, highlighting a year focused on consolidation rather than balance sheet expansion.
The strengthened cash position provides a buffer as the fintech navigates regulatory tightening, rising operating costs and muted venture funding across Africa’s tech ecosystem.
Read also: How regulatory shifts, big-ticket investments shaped fintech industry
Eyes on sustainable growth
Looking ahead, Kuda is forecasting revenue growth of about 40 percent, driven by disciplined credit expansion and increased customer activity rather than rapid user acquisition. The bank plans to grow its monthly active users to 1.7 million by December 2026 and double its business customer base over the same period.
Registered users rose to 7 million in 2024 from 6.3 million the previous year, but the shift in strategy suggests management is prioritising engagement and monetisation over headline user numbers.
As Nigeria’s fintech sector matures under tougher macroeconomic conditions, Kuda’s results underline a key transition: survival and scale will increasingly depend not on how fast platforms grow, but on how quickly they can turn growth into sustainable profits.
