Kuda Targets 40% Revenue Growth After Licence Upgrade

In Short

A new review says Kuda is shifting from “free banking” toward a broader money app strategy in 2026. The report cites a National Microfinance Bank licence upgrade, growth targets, and recent funding details.

What Happened

The review, published on August 17, 2026, argues that Kuda built early momentum in Nigeria by making account opening and transfers feel simple and low-cost. It also argues that as free transfers became common across Nigerian digital banking, Kuda’s original hook became less distinctive.

The report says Kuda is targeting roughly 40% revenue growth in 2026. It also reports a goal of about 1.7 million monthly active users, meaning users who open the app and do at least one meaningful action in a month.

On regulation, the review says Kuda received a National Microfinance Bank licence upgrade in January 2026. In plain terms, that is a higher tier microfinance banking licence, which can expand what a lender can do under Central Bank of Nigeria rules, depending on the licence scope.

On capital, the review reports that Kuda completed an approximately $20 million equity round in 2024 at roughly a $500 million valuation. Equity funding means investors buy a stake in the company, unlike debt which must be repaid.

The review also highlights Kuda’s earlier credit challenges. It points to a 2021 attempt at scaling overdrafts, and cites a very high non-performing loan ratio tied to that product. A non-performing loan is a loan that borrowers are not paying back on time.

Why It Matters

Many consumer fintechs in Nigeria have already won sign-ups. The harder test is retention, which is keeping users active, and monetisation, which is earning revenue per user.

For Kuda, deeper credit, savings, and payments could increase switching costs, meaning it becomes less convenient for customers to leave. But credit also raises risk, because losses can scale quickly if underwriting, the process of deciding who gets a loan, is weak.

The licence upgrade and the 2024 round, if accurate, suggest Kuda has more regulatory room and some fresh capital to pursue its money app positioning. The next signal to watch is whether growth in active users translates into healthier lending performance and more recurring revenue, not just more downloads.