…eyes to reach 1.7 million active users by 2026
Kuda Technologies, the UK-headquartered parent of Nigerian digital lender Kuda Bank, sharply narrowed its losses in 2024 as the fintech pivoted from aggressive expansion to financial discipline and a strict focus on profitability.
The company reported a loss of $5.83 million for the year, an 84 percent improvement from the loss of $35.11 million recorded in 2023, according to financial data seen by BusinessDay.
The change reflects deep cost cuts and strategic recalibration as Nigeria's largest domestic neobank grapples with currency volatility and a tough funding environment for fintechs.
Also read: Following the path of traditional banks, fintech has taken banking customer experience to new heights
The results indicate broader changes in Africa's venture-backed fintech sector, where investors are rewarding efficient growth over customer acquisition at all costs. For Cuda, which has raised more than $90 million from investors including Valar Ventures and Target Global, the reduction in losses brings the lender closer to profitability, which is still elusive for many of its peers.
Cost cutting, structure tightening
Cost control was the primary driver of the improved bottom line. Other operating expenses fell 61 percent to $17.12 million, while staff costs fell 46 percent to $6.31 million, underscoring a lean operating structure after workforce cuts and tighter expense controls.
Cost discipline helped offset the impact of Nigeria's currency devaluation on Kuda's dollar-denominated financials. While the Nigerian subsidiary's revenue almost doubled in naira terms to N21.2 billion, the group's revenue declined 15 percent in dollar terms to $18.34 million from $21.61 million in 2023. Management attributed the decline to the sharp weakening of the Naira, which reduced the value of local earnings when consolidated at the group level.
Deposit mix reveals changing dynamics
Despite operating profits, pressure is emerging on Kuda's balance sheet. Total customer deposits fell to N83.20 billion from N96 billion a year earlier, reflecting pressure on consumer liquidity in an inflation-hit economy.
Retail deposits declined sharply from N67.34 billion to N47.43 billion, suggesting reduced spending power among Kuda's core mass-market users. In contrast, business customers' deposits increased from N14.23 billion to N21.27 billion, pointing to growing attraction among small and medium-sized enterprises as the bank leans towards more stable, high-value customers.
liquidity strengthened
Cuda ended the year with a strong liquidity position, with $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 strong cash position provides a buffer as fintechs deal with regulatory tightening, rising operating costs and subdued venture funding in Africa's tech ecosystem.
Also read: How regulatory changes, big investments shaped the fintech industry
Eye on sustainable development
Looking ahead, Kuda is projecting revenue growth of around 40 per cent, driven by disciplined credit expansion and increased customer activity rather than rapid user acquisition. The bank plans to increase its monthly active users to 1.7 million by December 2026 and double its business customer base in the same period.
Registered users are expected to rise from 6.3 million last year to 7 million in 2024, but the change in strategy suggests management is prioritizing engagement and monetization over headline user numbers.
As Nigeria's fintech sector matures amid tough macroeconomic conditions, Kuda's results underline an important shift: survival and scale will increasingly depend not on how fast platforms grow, but on how fast they can translate growth into sustainable profits.
