I had to read the report again..

The financial report indicated that the company’s revenue increased by 4,315% from ₦72,649,000 in 2020 to ₦3,207,177,570 in 2021.

However, after every expense had been deducted, the company closed the year at a net loss, with high credit loss/impairment charge and operating expenses contributing the most to the loss.

Kuda will survive. It's not that deep. I think the bank's high operating expense came from its aggressive marketing and advertising in 2021. The bank must have achieved its goal (or learnt a lesson); reason they're unlikely to invest in BBN again.

At 4,315% increase in revenue in just a year, the bank is somewhat positioned for greatness but I hope this news won't cause panic withdrawal...

Eyin ayamasan i hail you oo

They make money from.the app itself, when you pay for services, recharge and loans so their loss may be attributed to taxes

Chaiiiiiiiii why are they loosing money naaahChaiiiiiiiii why are they loosing money naaah...

Oga calm down. Which of the multiple taxation caused the huge loss? Una too sabi talk anyhow.

DrRasheed:
There's no fcknn way Fintech will flourish under multiple taxation policies of this administration. Kuda Bank has really tried but woefully failed.

.

Acidosis:
You see all these financial technology companies spending billions on ads and Big Brother Naija, better run oo. If you must patronise them, please watch closely and know when to run.
It takes a minimum of 1 Billion Naira to co-sponsor the show.

Patricia tried it and now the company is f**ked. Revolution Plus did it and messed up investors' confidence. Abeg is literally dead, etc. That show wrecked another e-commerce company like that. People should also be careful with the likes of Piggyvest.

I thought it was part of their strategies to appeal to the viewers who are predominantly youths.
The ecommerce company, is it Payporte? They have an outlet opposite Benin Airport and I don't see heavy commercial activities going on there. I only imagined where they got money to sponsor or the owner is a corporate y**** guy as they're called here.

We should now fry pepper?

Esthered:

I thought it was part of their strategies to appeal to the viewers who are predominantly youths.
The ecommerce company, is it Payporte? They have an outlet opposite Benin Airport and I don't see heavy commercial activities going on there. I only imagined where they got money to sponsor or the owner is a corporate y**** guy as they're called here.

Most companies that rush to sponsor BBnaija don’t have sense. The show doesn’t have any impact on their sales. Imagine a supermarket like grandex. Last year they sponsored the show and they didn’t see much impact after wasting money. This year they didn’t even bother.

Same thing applies to GET FIT the company that was marketing Waist Trimmers, Body Shapers and rechargeable blenders. These are items that you can easily market or sell via Instagram and YouTube with the aid of influencers. What the point of paying so much to Multichoice. I just dey pity PEPSI. Every year they keep spending so much and yet in Nigeria they don’t even control the market share in the soft drink sector

RealLordZeus:
The idea of free banking in Nigeria is already equivalent to Loss..

Most ppl I know using them are doing so because of the free transfers and once they exceed that limit, they stop till the following month.. its that awoof mentality in us.

But a quick soln for them, start granting personal and soft loans to users thus making use of their deposit
Development of online and offline POS systems for merchant will also help

TBH when i heard they don't charge for transaction, I began to doubt the legitimacy of the platform, with the question: How do they make money if they don't charge?

Omihanifa:


Most companies that rush to sponsor BBnaija don’t have sense. The show doesn’t have any impact on their sales. Imagine a supermarket like grandex. Last year they sponsored the show and they didn’t see much impact after wasting money. This year they didn’t even bother.

Same thing applies to GET FIT the company that was marketing Waist Trimmers, Body Shapers and rechargeable blenders. These are items that you can easily market or sell via Instagram and YouTube with the aid of influencers. What the point of paying so much to Multichoice. I just dey pity PEPSI. Every year they keep spending so much and yet in Nigeria they don’t even control the market share in the soft drink sector

Get Fit I think wanted more visibility and an influencer that has great followership on social media as it's not enough to just put up an ad with an unknown face and it's cheaper for an ex-housemate to market the product than an established star.
I believe that any company wanting to sponsor must have done their cost-benefit analysis before embarking on sponsoring such program.

Esthered:

I thought it was part of their strategies to appeal to the viewers who are predominantly youths.
The ecommerce company, is it Payporte? They have an outlet opposite Benin Airport and I don't see heavy commercial activities going on there. I only imagined where they got money to sponsor or the owner is a corporate y**** guy as they're called here.

Yes, I believe it was part of their strategies to appeal to the younger generation but I also think that the platform is too expensive and overrated, especially for a new company. The likes of Vbank and Fairmoney have shown that there are other avenues to appeal to the market without investing so much.

Yes, the e-commerce is Payporte They went bankrupt after sponsoring the season 3 edition of the show. It was so bad they couldn't pay staff salaries and prizes won by the season 3 housemates. Few years after, they rebranded sha, switched from e-commerce to a fashion/clothing brand, and never went back to Big Brother.

And you're right about the corporate y**** thing, my dear. There are rumours that many fintech owners are deeply involved.

NinjaXmetahuman:
banks are not making profits from charges.

Most of their profits come from loans and investments.

There's NII(Non Interest Income) in banking, this is where charges and other earned income are classified.

Acidosis:


Yes, I believe it was part of their strategies to appeal to the younger generation but I also think that the platform is too expensive and overrated, especially for a new company. The likes of Vbank and Fairmoney have shown that there are other avenues to appeal to the market without investing so much.

Yes, the e-commerce is Payporte They went bankrupt after sponsoring the season 3 edition of the show. It was so bad they couldn't pay staff salaries and prizes won by the season 3 housemates. Few years after, they rebranded sha, switched from e-commerce to a fashion/clothing brand, and never went back to Big Brother.

And you're right about the corporate y**** thing, my dear. There are rumours that many fintech owners are deeply involved.

When I read the profile of last year's sponsors, I was wondering how did they make so much, how old and profitable is their business to be able to sponsor such show. As at that time was when the legislation banning crypto was being emphasized, the advertisement by Patricia on BBN was about their crypto and bitcoin services, I was worried if the government would clamp down on them but they never did.

I think loss of consumer confidence affected them. You can't just be blocking people's accounts anyhow. That'll send fear to your customers and potential customers.

Esthered:

When I read the profile of last year's sponsors, I was wondering how did they make so much, how old and profitable is their business to be able to sponsor such show. As at that time was when the legislation banning crypto was being emphasized, the advertisement by Patricia on BBN was about their crypto and bitcoin services, I was worried if the government would clamp down on them but they never did.

Yeah, I had the same concern. I believe money must have exchanged hands. I also think that the owner has a very strong financier (legitimate or otherwise).

That's really nasty financial performance for the Bank of free.

That's not the reason for losses...digital banks are great if managed well. But the fall of any digital banks is to offer much freebies. If you don't know how to give with one hand and collect with two, it will collapse. It can work well here in Nigeria. They need better management and focus.

jackcanfield:
digital bank would have difficulties surviving , they might have a good model but sadly what works in other countries don't work in Nigeria because we have mostly crooks as citizens ....because the fact you have an NIN does mean someone can't impersonate your identity, the fact that you have a phone number doesn't mean it is solely attached to you, the fact that you open an account with a digital bank doesn't mean your details won't be use to open another virtual account without your knowledge...so they are many but .. set out to deliberately frustrate the system

Exactly...they don't need it. If they can provide quality service and remove the stress of visiting branches(which to some extent has been done), it will scale.

faithfull18:
Hmmn! In the long term, giving freebies isn't an effective strategy.

Literally every banks are posting gains, for Kuda to be an exception...the worst exception even. Then they must have really terrible management.

JudeAfoo:
While old generation banks are cashing out. Kuda is meant to be a rebel FinTech supporting the youths and crypto investments. But no, they chicken in like they've got no balls

They are regulated and can not go against the regulator or they would lose their license

Idrismusty97:
Literally every banks are posting gains, for Kuda to be an exception...the worst exception even. Then they must have really terrible management.

They are a challenger bank. If they wanted to run a regular bank, they would have made profits.

WHITELIGHTER:


By ur analysis, Opay should be recording double kuda loss but it isn't just plain ABCD

Have you seen OPay's results?

OPay is making heavy losses as well.

einsteine:


They are a challenger bank. If they wanted to run a regular bank, they would have made profits.

Even so that lost is too much haba. Flutterwave and Vbank are challenger banks too but have profits comparable to regular banks. Especially not in the season of gains were banks and companies are recovering from covid.

Forget about the loss and focus on the 44x increase in revenue. In the next 3 years, they should be able to hit 20 billion in revenue while bringing OPEX down. They just launched Kuda Business.

Idrismusty97:
Even so that lost is too much haba. Flutterwave and Vbank are challenger banks too but have profits comparable to regular banks. Especially not in the season of gains were banks and companies are recovering from covid.

Neither of those two companies are profitable.

You should understand that VC funded companies focus on growth at the expense of profits initially. They increased revenue from 2020 to 2021 by 44x.

DrRasheed:
There's no fcknn way Fintech will flourish under multiple taxation policies of this administration. Kuda Bank has really tried but woefully failed.



Modified:
You see how useless we chose to be in this country? The above comment has nothing to do with double taxation, but see how rush to like it.
This is just how Peter Obi is uselessly explaining his economic policies using Buka arithmetics.

You are such a confused fool... After many have corrected your first silly comment, you modified and start hipping your stupidity on Peter Obi and his supporters.

Unintelligent Dr

Falseprofet2:
Bad loans

Nigerians don't like to pay loans even friend-to-friend loans much less a bank

Does Kuda give loans?

RealLordZeus:
The idea of free banking in Nigeria is already equivalent to Loss..

Most ppl I know using them are doing so because of the free transfers and once they exceed that limit, they stop till the following month.. its that awoof mentality in us.

But a quick soln for them, start granting personal and soft loans to users thus making use of their deposit
Development of online and offline POS systems for merchant will also help

That business model is flawed especially in an economy that has high rate of inflation

einsteine:


Neither of those two companies are profitable.

You should understand that VC funded companies focus on growth at the expense of profits initially. They increased revenue from 2020 to 2021 by 44x.

You're spot on. Sad to see that most commenters here are woefully ignorant.

Kuda houses a ton of my money for day to day transactions. They're in my opinion the best bank right now in terms of functionality and reliability. And I've tried lots and lots of banks, traditional and fintech.

The so-called loss isn't anything to talk about, when the emphasis is on their massive growth rate as you rightly mentioned.

Themandator:
Useless bank that reported a nairalander for receiving earned money with their bank... That day I transferred my money out of their useless vault

Let them go under

How?

twosquare:
That's not the reason for losses...digital banks are great if managed well. But the fall of any digital banks is to offer much freebies. If you don't know how to give with one hand and collect with two, it will collapse. It can work well here in Nigeria. They need better management and focus.

If you ask them I am sure their lose emanated from fraudulent activities ..Nigeria are no saints .. forget they go to churches and mosques and be disturbing a gentle God..know this and have peace.