Kuda, a Nigerian digital bank that offers free transfers, cashless payment options, savings, and loans, has revealed that it processed over 300 million transactions worth N14.3 trillion in the first quarter (Q1) of 2025, spanning both its retail and business banking operations.
This disclosure was made by CEO Babs Ogundeyi during a media briefing held in Lagos on Monday, July 7, 2025. Breaking down the numbers, Babs noted that N8.5 trillion came from retail banking, while N5.8 trillion was generated from business users.
This marks Kuda’s most comprehensive operational disclosure, going beyond its usual customer growth reports. While the neobank previously announced a user base exceeding 7 million as of January 2024, this is the first time it has shared detailed financial metrics. As of January 2024, the company had notched up an impressive N55.8 trillion ($61.4 billion) in total transactions since its 2019 launch.
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In addition to transaction volumes, Kuda also issued N16.4 billion in overdrafts in Q1, putting it on pace to surpass its entire 2023 overdraft issuance of $12.6 million (N19 billion) once Q2 results are available. The company further disclosed that it paid out N130 million in interest to users during the quarter.
Transfers remained the core of user activity, with business clients alone accounting for N1.5 trillion in transfers. Despite Kuda offering mostly free transfers, the platform saw a higher volume of paid transfers, suggesting that Nigerian users continue to favor transfers as their primary payment method even when fees apply.
Notably, in Q1, the Kuda relaunched its multicurrency wallet, targeting the competitive remittance market. The wallet currently supports pounds and euros for users outside Nigeria, with plans to add US and Canadian dollars within six months.
With over 300 million transactions already recorded in Q1, Kuda appears on course to exceed 1.2 billion transactions by year-end. Founded in 2019 by Babs Ogundeyi and Musty Mustapha, Kuda offers a range of services, allowing users to open accounts, deposit funds, conduct transactions, and access credit.
The company which operates under a microfinance banking licence from the Central Bank of Nigeria, has witnessed significant growth since the beginning of the COVID-19 pandemic having firmly positioned itself as a safe alternative to brick-and-mortar banks at a time when social distancing rules have made visiting banking halls a challenging experience.
In 2021, the digital-led challenger bank for Africa revealed that its Android app was downloaded over 1 million times. Kuda’s total deposits more than doubled from $41 million in 2021 to $100 million in 2022. The report also highlighted Kuda’s growing business banking services as deposits from business customers jumped 154x from less than $102,000 to nearly $15 million at the end of the year.
Expanding its reach, the neobank has ventured into cross-border payments across Africa and Europe. Last year, the Nigerian-based parent company received payment licences in Tanzania and Canada to further its plans to expand across the African and global markets.
It has also extended its footprint to the UK and Pakistan, acquiring a digital banking license from the State Bank of Pakistan. As a pioneer of Nigeria’s neobanking sector, Kuda competes with OPay, PalmPay, and Moniepoint. Unlike its rivals, which rely heavily on mobile money and agent networks, Kuda maintains an app-first approach, offering digital retail banking and credit.