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Kuda hits ₦55.8 trillion in transaction value within four years

Nigerian neobank has recorded ₦55.8 trillion in transaction value within four years.

Kuda Bank co-founders

Nigerian neobank Kuda has recorded ₦55.8 trillion (~$61.4 billion) in transactions since its launch in August 2019, as revealed by CEO Babs Ogundeyi in a New Year message to users.

Ogundeyi said the bank achieved this feat while serving over seven million customers. "We are proud of the headway we made against all odds," he added.

Known as "the bank of the free", Kuda has secured at least $91.6 million in funding since its inception. In 2021, the bank raised $55 million in a Series B funding round, reaching a valuation of $500 million.

Licensed as a microfinance bank by the Central Bank of Nigeria, Kuda currently allow users to open accounts, deposit money, transact, and receive credit. Expanding its services, the neobank recently ventured into cross-border payments and extended its presence to the UK and Pakistan where it acquired a digital banking licence from the State Bank of Pakistan.

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In 2021, Kuda reportedly faced a surge in losses, reaching ₦6 billion, which marked a significant 602% increase compared to its losses in 2020, mainly attributed to non-performing loans. Furthermore, the company carried out a workforce reduction of 5% in September 2022.

Ogundeyi stated that the bank plans to intensify its focus on existing offerings in 2024, including Kuda Overdraft, Kuda POS terminal, and Kuda Business. Expressing optimism, he mentioned, "No matter what economic forecasts say, I believe that things are looking up for us all this year."

Editor's Note: An earlier version of this article said Kuda recorded $6 billion loss. That is incorrect, the correct figure is ₦6 billion, as reported by TechCabal.