Target Global-backed neobank Kuda grew revenue to $22m in 2022
TLDR
- Kuda, the African neobank, reported a $32 million net loss in 2022 despite a 190% revenue surge to $22 million.
- The loss was mainly driven by increased staffing and operational costs, as highlighted by Tech Cabal.
- Kuda's aggressive market expansion into the UK, Canada, Ghana, Tanzania, and Uganda led to significant customer growth, doubling its user base to 4.9 million.
African neobank, Kuda, recorded a net loss of $32 million in 2022 according to its latest financial report filed in the UK, despite a 190% surge in the company’s revenue for the year, which increased to $22 million from $7.7 million in 2021.
The loss is primarily driven by increased staffing and operational costs, as reported by Tech Cabal. The company, which operates primarily in Nigeria, has also seen its user base double to 4.9 million from 2.4 million in the previous year.
The significant customer growth indicates that Kuda’s focus on product expansion, including international remittances, and its aggressive market entry into the UK, Canada, Ghana, Tanzania, and Uganda, has paid off.
Key Takeaways
Despite the loss, Kuda maintains it has sufficient funds to break even and is not seeking additional financing. In 2022, Kuda’s deposit base more than doubled to $100 million, with business banking deposits skyrocketing 154x to nearly $15 million. Treasury investments in Nigeria generated $3.5 million, a third of its interest income, as Kuda capitalized on the Central Bank of Nigeria’s rising interest rates to curb inflation. Kuda's business banking segment grew rapidly, with 100,000 business customers. The introduction of POS terminals and payroll management services through Bento solidified its market position. However, Kuda faces the challenge of balancing growth with profitability. The company’s cash reserves dwindled by nearly 50% to $33 million in 2022, and a previous attempt to raise bridge funding was unsuccessful.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.