Kuda’s Remittance Rebirth: A Bold Move in African Fintech
Kuda, the prominent Nigerian neobank, is re-entering the remittance market after a three-year hiatus, marking a significant strategic shift in its offerings. This renewed focus on remittances reflects the company’s growth and its ability to capitalize on its expanded user base and financial infrastructure within the burgeoning African fintech space.
Building for the Future: Kuda’s Remittance Product
Kuda’s revamped remittance product is now a multi-currency wallet integrated within its app. This system allows users outside Nigeria to directly send money home, bypassing third-party intermediaries. This move signifies a strategic shift, indicating Kuda’s ability to handle the increased volume. In Q1 2025, the company managed over 300 million transactions, totaling $9.3 billion, while issuing $10.7 million in overdrafts, which represents a substantial 43% growth. Following a $20 million fundraising round at a $500 million valuation, Kuda now has the resources and operational volume from both retail and business users to justify its more ambitious expansion efforts. Previously, Kuda’s initial foray into remittances in 2022 leaned heavily on intermediaries, impacting its profitability. The neobank is now operating with a positive net margin between 3% and 7%, suggesting the new remittance strategy is financially viable. This relaunch suggests that Kuda’s financial foundation is solid enough to support its new products.
The relaunch of Kuda’s remittance services underlines the company’s confidence in its current financial strength and a commitment to expanding its services within the African fintech landscape.
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