Kuda launches remittance wallet for diaspora users after processing ₦8.5tn in Q1

Kuda Technologies, a Nigerian fintech, has launched a multicurrency wallet, entering the crowded remittance space to serve its growing diaspora customer base as it continues to chase global growth.

The new feature, embedded within the Kuda app, allows users abroad to send pounds and euros to Nigeria, though Nigerians can’t return the favour yet. The move pits the neobank against players like Lemfi and Moniepoint, but is primarily aimed at retaining its customers who are relocating abroad, CEO Babs Ogundeyi said.

A significant aspect of the neobank’s seven million customer base has begun to move abroad, with nobody to serve them, Ogundeyi said at a pre-launch briefing. He described serving this migrating user base as “inevitable” amid a rise in freelancers and digital nomads. The company plans to add U.S. and Canadian dollars at a later date.

“It is something we are pretty excited about,” Nosa Oyegun, Kuda’s Vice President for Business Banking, added. “Remittance is a crowded space, but it is just convenient. It is very inconvenient to shuttle through three to four apps to make one transaction. “

The foray into remittances comes as the company balances aggressive expansion with a push for profitability. While the parent group reported a $40 million loss on $32 million in revenue in 2023, Ogundeyi stated that its Nigerian operations have been profitable, generating over ₦6 billion ($4.1 million) in the first quarter of 2025.

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Kuda’s Q1 2025 financial performance

Kuda’s Nigerian retail business processed ₦8.5 trillion in transactions in the first quarter of 2025, according to the CEO. The business banking unit, a key growth area, handled ₦5.8 trillion in the same period.

The company is betting on a comprehensive suite of services for businesses, moving beyond the popular agency banking model. A six-month pilot for Point-of-Sale (POS) terminals has identified restaurants, boutiques, and supermarkets as sweet spots, said Oyegun. The goal is to manage the full business lifecycle, from invoicing to inventory management.

“We are trying to find the gap,” Oyegun said. “When we find it, we will roll it out.”

The neobank has also ramped up its credit offerings, closing the first quarter with ₦17 billion in overdrafts, a 50% increase from the same period in 2024. Ogundeyi noted that the credit product has achieved a net positive margin, built on a conservative lending model that evaluates user behavior.

Kuda’s future plans

To fuel its expansion beyond Nigeria, the UK, and Tanzania, Kuda will continue to raise capital. The company confirmed an undisclosed equity round in 2024, following earlier reports that it had sought $20 million at a valuation of $500 million.

Ogundeyi acknowledged the trade-off between rapid growth and near-term profitability. “The desire for growth at a global level could void the eventual plan of profitability,” he said. “However, if the bank chooses to stay lean and conservative, profitability will be easier to reach.”