Kuda Group, the holding company of Nigerian neobank Kuda Bank, reported $32.1 million in revenue for 2023, falling short of its projected $40 million target. Despite this shortfall, the bank achieved a 49% increase from the $21.5 million in revenue reported in 2022. This growth was despite the naira’s 40% devaluation against the dollar in 2023.
Kuda’s app user base also expanded to 7.2 million in 2023, a 47% rise from 4.9 million in 2022.
However, total losses grew to $40 million in 2023, up from $18.5 million in 2022. These losses were primarily due to increased staffing and operational costs, including $8 million in salaries for 456 employees.
Neobanks often lose money during the initial growth phases as they acquire customers and invest in product development while operating with limited revenue—Kuda is no exception. Monzo lost $143 million in 2020, while Revolut lost $135 million in 2019.
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By the end of 2023, KUDA had $5 million in cash compared to operating expenses of approximately $55 million per year. Bank liquid assets cover customer deposits and provide buffers of over USD 20 million. The examiner found that the company was not at risk of concern in a short period. However, additional capital may be required to cover operational costs.
The bank currently has US$96 million in customer deposits and total assets worth USD 125 million, with a slight increase in customer deposits starting at S$ 94 million in 2022, but $140 million in assets. is decreasing. However, customer deposits fade fade compared to two business banks, including the $1.35 billion UNITY Bank and the $1.9 billion WEMA Bank.
