PalmPay Set to Raise $50-$100 Million in Series B Round
PalmPay, a leading African digital bank fintech, is currently in discussions to secure between $50 million and $100 million in a Series B funding round, as per sources familiar with the matter. While the exact valuation sought is unknown, the company’s previous funding round in 2021 positioned it as one of the most valuable startups on the continent, nearing unicorn status.
The six-year-old fintech firm, which has raised close to $140 million through its seed and Series A rounds, is reportedly profitable. Although PalmPay has not disclosed specific details about the fundraising, a spokesperson stated that the company is in a strong financial position and is exploring opportunities for growth.
The upcoming capital infusion, comprising both equity and debt, will support PalmPay’s expansion efforts. This includes strengthening its presence in Nigeria, scaling its business-focused offerings, and launching its products in new markets across Africa and Asia.
In recent news, PalmPay revealed that it has reached 15 million daily transactions, driven by its 35 million registered users. These transactions now amount to “tens of billions of dollars” annually in value. Additionally, the company’s revenue has more than doubled since 2023, reaching $64 million, according to reports.
PalmPay’s Journey and Business Model
Launched in 2019 in Nigeria, PalmPay recognized the opportunity to address the unbanked population in Africa. With over half of adults in Nigeria lacking access to traditional banking services, PalmPay aimed to revolutionize the industry by offering a digital bank tailored to the needs of the informal economy.
The company’s app features instant onboarding, zero transfer fees, and a range of services such as credit, savings, insurance, and bill payments, catering to underbanked consumers and small businesses. PalmPay also established a vast network of over 1 million small businesses and agent merchants, serving over 10 million customers monthly through the PalmPay Business app and point-of-sale devices.
Similar to other major fintech players in Nigeria, PalmPay adopted a hybrid model that combines digital applications with physical touchpoints to enhance user experience and accessibility.
Global Expansion and Partnerships
With its success in Nigeria, PalmPay is now venturing into new markets abroad. The neobanking platform has expanded to Tanzania and Bangladesh, offering device financing and consumer credit as initial services before introducing additional financial products. The company also plans to introduce device financing in Nigeria, further solidifying its presence in the market.
PalmPay’s strategic partnership with Transsion, a prominent Chinese smartphone manufacturer in Africa, has played a crucial role in driving user acquisition and engagement. By pre-installing the PalmPay app on select Transsion smartphones, the fintech firm has been able to reach a wider audience and establish itself as one of the most widely used fintech apps in the country.
Looking ahead, PalmPay is exploring collaborations with additional original equipment manufacturers (OEMs) to expand its reach and offerings. With investors like GIC and Mediatek backing the company, PalmPay is well-positioned for further growth and innovation in the fintech sector.
On the business-facing front, PalmPay offers cross-border payment solutions for merchants seeking to conduct transactions across Africa through a single API. This feature, currently available in Nigeria, Kenya, and Tanzania, has already processed “hundreds of millions of dollars monthly,” highlighting the company’s commitment to facilitating seamless financial transactions for businesses in the region.
