Kuda Group, the parent company of a Nigerian neobank, revealed a revenue of $32.1 million in 2023, slightly below its target of $40 million. Despite missing the mark, the company saw a 49% increase from the previous year’s revenue of $21.5 million, despite the naira’s devaluation against the dollar.
The neobank’s app user base grew to 7.2 million in 2023, a 47% rise from the previous year. However, total losses spiked to $40 million in 2023, up from $18.5 million in 2022, mainly due to increased staffing and operational costs.
Kuda, like many neobanks, faces initial losses during its growth phase as it invests in customer acquisition and product development. By the end of 2023, Kuda had $5 million in cash against annual operating costs of about $55 million, with liquid assets covering customer deposits adequately.
Efforts to secure additional funding were underway after discussions to raise a $20 million bridge round in 2023. The company has raised over $81 million in funding since its establishment in 2019.
Kuda’s revenue model includes various streams like interest on customer loans, returns from investments, banking service fees, and commissions from partners. The bank’s lending practices remained cautious, issuing $12.6 million in overdrafts in 2023.
Despite having $96 million in customer deposits and assets worth $125 million, Kuda’s figures are lower compared to some tier-2 commercial banks in Nigeria.