Kuda Bank, a Nigerian neobank, raised an undisclosed equity round in 2024, securing additional capital after its operational costs spiked losses and led to a decline in cash reserves. In 2023, Kuda’s revenue grew to $32 million, while its user base expanded to 7.2 million.
However, its losses also grew to $40 million. While the bank previously denied raising funding in 2023, its latest financial report confirmed a funding round in 2024.
“The Group completed one round of fundraising via equity in 2024, and the directors are confident that should further funding be required, it can be obtained,” the company said in a corporate filing to Company House, UK.
The valuation for the round remains undisclosed, but past reports suggested Kuda sought $20 million at a $500 million valuation. If it raised funding at that valuation, it would signal continued investor confidence despite the bank’s aggressive 15x revenue multiple—higher than profitable neobanks like Nubank (8.4x) and Monzo (5.4x).
Kuda Bank did not immediately respond to a request for comment.
Before raising the equity round, Kuda held $96 million in customer deposits, much lower than some of Nigeria’s tier-2 commercial banks like Unity Bank ($1.35 billion) and Wema Bank ($1.9 billion). It also had $5.3 million in cash reserves, a significant drop from the $30.8 million it had in 2022.
Kuda plans to monetise its proprietary banking software through licensing deals, similar to Sterling Bank, which pitched its core banking technology SeaBaaS, to MTN’s fintech subsidiary, Momo, in 2023.
Like most neobanks, Kuda remains in a high-growth phase that demands significant capital. However, it still has time—Monzo and Nubank took nearly a decade to turn profitable. With its latest funding, Kuda has secured more runway, yet it will need to reduce operating costs ($44.8 million) while driving sustainable growth.
from TechCabal https://ift.tt/IHJrUc6
via IFTTT
I am the CEO of 9JAGISTLAND.My name is Adedeji Timothy and my co-owner is Oyekola Damilare.This blog is born out of our passion to educating to people in all aspect of internet life.We are enthusiastic about writing posts and articles online.
Write your views on this post and share it. ConversionConversion EmoticonEmoticon