It was earlier reported that the fast-growing Nigerian FinTech Startup, Kuda Bank – incurred a net loss of ₦6,092,554,866 ($14,214,681) in the 2021. In a bit to provide answers to the cause of the tremendous loss, reports have highlighted bad loans and the immense increase in staff as major contributors to it.
The loss incurred in the fiscal year is said to have nothing to do with the decline in revenue as there was a revenue increase by 4,315% which grew from ₦72,649,000 in 2020 to ₦3,207,177,570 in 2021. The loss however was caused by loan unreimbursed by clients and huge salary payment to staff.
According to Kuda’s report “the nonperforming loan (NPL) recorded by the leading MFB is too high for the comfort calculated at 69%”.
The increase in staff count also resulted to the depreciation of assets like laptop and furniture.
Aside the increase in staff count there was other key hires one of which is the extension of Ryan Laubscher, from an advisor through 2020 to a full-time role as its group COO, which of course poses so much cost on the firm.