Kuda MFB, a neobank operating under the Nigerian microfinance bank licence, has been recording losses for the past two years, TechCabal reports.
By the end of the 2021 financial year, the company recorded a loss of ₦6,092,554,866 ($14,214,681), a 602% rise from the ₦868,062,000 ($2,025,295) loss it made in 2020, according to its financial report.
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’s personnel expenses also increased by close to 500% from ₦215,437,000 in 2020 to ₦1,285,381,188 as a result of its increasing employment of key management staff at high cost, salary review, and promotion of current staff.
This increase in staff count also subjected its depreciation and amortisation—laptop, furniture, etc—to a serious jump by 246% to ₦64,326,473, from ₦18,590,000. Collectively, all of Kuda’s operating expenses (OPEX) went up 652% to ₦7,033,275,412 in 2021 from ₦935,560,000 in 2020.