Kuda Bank, a Nigerian neobank, secured an undisclosed equity funding round in 2024 to cushion its growing losses and declining cash reserves. Despite revenue reaching $32 million and a user base of 7.2 million in 2023, the bank’s losses surged to $40 million.
Though Kuda previously denied raising funds in 2023, its latest filings confirm the new capital injection. While the exact valuation remains undisclosed, reports suggest Kuda sought $20 million at a $500 million valuation, reflecting investor confidence despite its aggressive revenue multiple.
With only $96 million in customer deposits and $5.3 million in cash reserves—down from $30.8 million in 2022—Kuda is exploring new revenue streams, including licensing its banking software. However, like other neobanks, it must balance high growth with cost efficiency to achieve long-term sustainability.
Read the full news here: TechCabal