Kuda Reduces Losses to $5.8m as Fintech Repositions for Profit Growth
In a major financial development for Nigeria’s digital banking scene, Kuda Technologies has successfully narrowed its annual losses to just $5.83 million, marking a dramatic turnaround from the deep deficits that have long dogged Africa’s neobank hopefuls. This strategic shift underscores a broader pivot by the fintech from rapid expansion toward disciplined, profit-focused operations.
The UK-based parent of Nigeria’s popular digital bank disclosed that its losses shrank by more than 80 % year-on-year in 2024, compared with the hefty deficits recorded in previous reporting periods. Management attributes this improvement largely to sharp cost reductions and tighter financial controls, key components of a strategy aimed at long-term sustainability rather than burning through investor cash to win market share.
From Growth at All Costs to Profitability
For years, Kuda’s growth story in Nigeria and beyond emphasized rapid user acquisition and product expansion. That aggressive push helped the bank grow its customer base into the millions, but also left it in the red as revenue struggled to keep pace with operating expenses — a common hurdle for early-stage neobanks globally.
In 2024, however, management deliberately tightened spending, cutting operating costs by more than 60 % and reducing staff costs by nearly half. These measures helped insulate the company from mounting macroeconomic pressures, including currency devaluation in Nigeria that eroded the value of local earnings when converted to dollars.
What This Means for Users and the Market
Although the Nigerian economy continues to grapple with inflation and pressure on household finances, Kuda’s operational gains have positioned it to pursue more sustainable revenue streams rather than subsidized growth. Company leadership has signaled a renewed emphasis on monetisation for example, through disciplined credit expansion and deeper engagement with business customers, a segment that has shown promising deposit growth.
While the fintech still faces competitive headwinds from peers like Moniepoint and traditional banks deepening their digital offerings, Kuda’s narrowed losses deserve recognition as a sign that Africa’s digital banking pioneers are maturing. The broader ecosystem — including investors — is increasingly favouring fintechs that can balance smart growth with profitability, a trend that has significant implications for the future of banking across the continent.
Management has set ambitious targets for revenue growth and active user expansion by the end of 2026, but the focus remains squarely on quality growth rather than vanity metrics. With a strengthened balance sheet and more disciplined cost base, Kuda is now better equipped to deliver real financial value for customers and stakeholders alike
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