African Fintech PalmPay Seeks $100M in Series B Funding

PalmPay Targets $100M in Series B Funding Round

African fintech company PalmPay is seeking to raise between $50 million and $100 million in a Series B funding round. Sources familiar with the matter confirm the ongoing discussions. This follows a successful Series A in 2021, which placed PalmPay among Africa's most valuable startups.

While PalmPay declined to comment on fundraising specifics, a spokesperson stated the company is "in a strong financial position and exploring growth opportunities."

Profitability and Growth Plans

Having already raised nearly $140 million across seed and Series A rounds, PalmPay is now profitable. The new capital, expected to include both equity and debt, will drive further expansion. This includes strengthening its presence in Nigeria, scaling its business-focused offerings, and launching products in new markets across Africa and Asia.

PalmPay reports impressive growth metrics, with 35 million registered users driving 15 million daily transactions. These transactions represent tens of billions of dollars annually. Revenue has also more than doubled since reaching $64 million in 2023.

PalmPay's Success in Nigeria

Launched in 2019 in Nigeria, PalmPay addressed the needs of the unbanked population. The company offers a digital banking app with instant onboarding, zero transfer fees, and services like credit, savings, insurance, and bill payments. PalmPay also built a network of over 1 million small businesses and agent merchants serving over 10 million customers monthly via the PalmPay Business app and point-of-sale devices.

PalmPay now claims to process more transactions than any traditional bank in Nigeria. A significant portion of its users, 25%, report PalmPay as their first financial account. This number rises to 60% for borrowers using PalmPay's credit products.

Strategic Partnerships and Expansion

PalmPay's partnership with Transsion, a dominant phone maker in Africa, has been key to its success. Pre-installing the PalmPay app on select Transsion smartphones has boosted user acquisition. While Transsion remains a strategic partner, PalmPay is exploring collaborations with other original equipment manufacturers (OEMs).

Beyond Nigeria, PalmPay has expanded to Tanzania and Bangladesh. The company is also planning to introduce device financing in Nigeria. Other investors in PalmPay include GIC (Singapore's sovereign wealth fund) and Mediatek.

Focus on Business Solutions

PalmPay also offers cross-border payment solutions for merchants across Africa. This service, currently live in Nigeria, Kenya, and Tanzania, with South Africa planned, already processes hundreds of millions of dollars monthly.