PalmPay, a leading African digital banking and fintech platform, is in advanced discussions to raise between $50 million and $100 million in a new Series B funding round, multiple sources familiar with the matter reveal. While the exact valuation PalmPay aims for remains undisclosed, its previous funding round in 2021 positioned it among the continent’s most valuable startups, just shy of reaching unicorn status.
Although PalmPay declined to comment on specific fundraising details, a spokesperson affirmed that the company is “in a strong financial position and exploring growth opportunities.” With nearly $140 million raised across its seed and Series A rounds, the fintech company is now reported to be profitable, signaling a major milestone in its journey.
Strategic Expansion and Growth Ambitions
The influx of new capital—expected to comprise both equity and debt—will enable PalmPay to accelerate its expansion across Africa and into new markets in Asia. Key focus areas include deepening its footprint in Nigeria, scaling its emerging business-focused offerings, and launching new products across regions.
In recent months, PalmPay reported reaching 15 million daily transactions driven by its 35 million registered users. These transactions involve “tens of billions of dollars” in annual value, according to company sources. Its revenue has also surged significantly, reaching $64 million in 2023, more than doubling from previous years, further showcasing its rapid growth trajectory.
How PalmPay Became a Fintech Powerhouse in Nigeria and Beyond
Founded in 2019, PalmPay began its journey in Nigeria, Africa’s largest economy and a thriving fintech hub. Recognizing that over half of Nigeria’s adult population was unbanked and that traditional banks catered primarily to formal-sector workers, PalmPay saw an enormous opportunity to serve the underbanked and informal economy.
The company’s solution was simple yet effective: create a digital bank tailored for Africa’s unique financial landscape. Its app offers:
- Instant onboarding with minimal barriers
- Zero transfer fees
- A growing suite of services, including credit, savings, insurance, and bill payments
Crucially, PalmPay combined digital outreach with a vast on-the-ground agent network of over 1 million small businesses and merchants. These agents facilitate cash-in and cash-out services for more than 10 million customers monthly via the PalmPay Business app and point-of-sale devices.
This hybrid model—merging digital platforms with physical presence—has become a hallmark for many successful fintechs in Nigeria, including OPay, Moniepoint, and Paga, and has propelled PalmPay to process more transactions than many traditional banks in the country.
Impact on Financial Inclusion
PalmPay claims that 25% of its users have reported it was their first-ever financial account. For users accessing credit through partnerships with licensed lenders, that number jumps to 60%. These figures highlight PalmPay’s pivotal role in expanding financial inclusion in Nigeria, especially among the unbanked and underbanked populations.
Strategic Partnership with Transsion
A key driver of PalmPay’s widespread adoption is its partnership with Transsion, the Chinese smartphone giant that dominates Africa’s mobile device market. By pre-installing the PalmPay app on select smartphones financed through Transsion’s brands (Tecno and Infinix), the company gains rapid access to millions of potential users, especially among youth and lower-income groups.
Expanding Beyond Africa
Building on its success, PalmPay is now expanding into Tanzania and Bangladesh—marking its initial foray outside Africa. In these markets, the company is introducing device financing and consumer credit as entry points, with plans to roll out additional financial services over time. Other African fintech giants like FairMoney, MNT-Halan, and TymeBank have also ventured into Asian markets, with varying levels of success.
The company also aims to bring device financing to Nigeria and is actively seeking collaborations with other original equipment manufacturers (OEMs) and strategic partners. Notable investors include GIC (Singapore’s sovereign wealth fund) and MediaTek, a major mobile chipset manufacturer.
Business-to-Business and Cross-Border Payments
In addition to consumer-focused services, PalmPay offers cross-border payment solutions for merchants seeking to send and receive payments across African countries via a unified API. Currently operational in Nigeria, Kenya, and Tanzania—with plans for South Africa—this feature processes hundreds of millions of dollars monthly, serving as a key pillar of its revenue model.
The Road Ahead
PalmPay’s move to raise substantial funding signals its ambitious plans to consolidate its market leadership, expand geographically
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