Kuda Microfinance Bank

• Full Name:  Kuda Microfinance Bank Limited (commonly known as Kuda Bank or simply Kuda)
• Parent Company: Kuda Technologies Limited
• Founded: 2019 (launched as a digital savings app; microfinance banking license obtained in June 2019)
• Founders: Babs Ogundeyi (CEO) and Musty Mustapha (CTO)
• Headquarters: Lagos, Nigeria (with a registered entity in London, UK, for international operations)
• Current Managing Director/CEO: Babs Ogundeyi
• Regulatory Status: Licensed Microfinance Bank (MFB) by the Central Bank of Nigeria (CBN); also holds payment licenses in Tanzania and Canada for expansion.

Key Facts & Achievements

• Nigeria’s first fully digital-only neobank, designed as the “Bank of the Free” to eliminate unnecessary fees and promote financial inclusion for millennials, underserved populations, and SMEs.
• Over 7 million users as of 2025, primarily in Nigeria, with growing traction in the UK and plans for pan-African expansion.
• Pioneered no-fee banking in Nigeria, offering 25 free transfers monthly and budgeting tools to combat high banking costs.
• First African neobank to achieve unicorn status (valued at $500 million after a $55 million Series B in 2021)
•  Awards include Neobank of the Year at the BusinessDay BAFI Awards (2021) and recognition as a top fintech innovator in Africa.
• In 2023, reported its first annual profit of ₦626.7 million (~$470,000), marking a shift from early losses to sustainable growth.
• Recent milestones: Partnership with SeerBit in 2024 for seamless cardless payments; launched in-house remittance wallet in 2025 (currently unavailable to Nigerian users due to MFB foreign transaction limits).

Current Structure (2025)

Kuda operates as a mobile-first, app-only platform with no physical branches, powered by its proprietary core banking system called “Nerve.” It focuses on retail and business banking, emphasizing ethical banking, smart budgeting, and low-cost services.

Core Segments

– Retail Banking: Targets individuals with fee-free accounts and savings tools.
– Business Banking (Kuda Business): Launched in 2022 for SMEs, now handling 40% of total transaction value.

Subsidiaries/Expansions

– Operations in Nigeria (primary), UK, Tanzania, and Canada (payment services).
– Plans for further African rollout, including Ghana and Kenya, supported by recent funding.

Services & Products (Retail & Business)

Kuda’s app (available on iOS and Android) allows instant account opening in minutes, with features like virtual cards, budgeting planners, and multi-currency wallets. It excludes traditional banking hassles like maintenance fees, promoting periodic savings with interest.

Kuda emphasizes user consent for all charges and has processed over $9.3 billion in Q1 2025 alone, with projections for $37.2 billion annually.

Financial Snapshot (as of Q1 2025; Latest Public Figures)

• Total Transactions Processed: ₦14.3 trillion (~$9.3 billion) in Q1 2025 (300 million+ transactions); on track for ₦57.2 trillion (~$37.2 billion) full-year, surpassing the first five years’ total of ₦55.8 trillion.
• Breakdown: Retail: ₦8.5 trillion ($5.5 billion); Business: ₦5.8 trillion ($3.8 billion).
• Funding Raised: $111.6 million total (latest: $20 million equity at $500M valuation in 2024). Key investors include Valar Ventures, Target Global, SBI, and others.
• Profitability: First annual profit in 2023 (₦626.7M); Q1 2025 net margins 3%-7% monthly, with profitable overdraft issuance despite credit losses.
• Valuation: $500 million (post-2024 round).
• User Growth: 7+ million active users; 90%+ of interactions via app.

Digital Leadership

Kuda is a fintech trailblazer in Africa, with its app ranking among the top finance apps in Nigeria. It leverages AI for personalized budgeting and fraud detection, processing billions in volume without branches. The 2025 remittance reboot integrates fully into its wallet ecosystem, enhancing cross-border flows while complying with CBN rules. Recent X posts highlight everyday use, like users sharing account details for giveaways, underscoring its popularity for quick, fee-free transfers. Competitors include Monzo, PalmPay, and traditional banks like GTBank, but Kuda differentiates with zero-fee ethos and SME focus.

International Presence (2025)

• Nigeria: Core market, serving millions via MFB license.
• UK: Digital accounts for Nigerians in diaspora.
• Tanzania & Canada: Payment licenses for remittances and expansions.
• Future Plans: Pan-African growth, including joint ventures (e.g., with KT Bank Pakistan announced in 2025) and multi-currency enhancements to empower the unbanked.

Reputation & Customer Perception

Kuda is beloved for its user-friendly app, ethical practices, and empowerment of young Africans—earning praise like “I’ve made Kuda my main bank and I’m gonna refer all my friends!” on its site. Recent X buzz shows it as a go-to for quick transactions and giveaways, reflecting trust in its reliability. Criticisms include occasional regulatory hurdles (e.g., 2024 crypto transfer blocks, resolved swiftly) and loan eligibility strictness. Overall, it’s rated highly for innovation, with a collaborative startup culture emphasizing agility and customer-centricity.

In summary, as of December 2025, Kuda Microfinance Bank stands as a profitable, unicorn-status fintech leader revolutionizing banking in Africa through digital accessibility and fee-free innovation. With explosive transaction growth and expansion ambitions, it’s poised to deepen financial inclusion across the continent. For more, visit kuda.com or download the app.