African fintech company PalmPay is reportedly in advanced discussions to raise between $50 million and $100 million in a Series B funding round. Though the company has not disclosed its desired valuation, its last fundraising effort in 2021 positioned it just shy of unicorn status. A spokesperson for PalmPay confirmed the company is “in a strong financial position and exploring growth opportunities,” but declined to comment on specifics of the ongoing round.
Profitability Signals Market Strength
Now six years old, PalmPay has already raised nearly $140 million through its seed and Series A rounds. According to insiders familiar with its financials, the company is currently profitable, a rare milestone among African startups. The new capital is expected to include both equity and debt and will support PalmPay’s plans to deepen its presence in Nigeria, expand its business product line, and enter new African and Asian markets.
Surging User Base and Transaction Volume
PalmPay’s growth has been substantial, with the company recently hitting 15 million daily transactions. Its app now boasts 35 million registered users, and transaction volumes have reportedly climbed into the tens of billions of dollars annually. Revenue has kept pace, more than doubling since it reached $64 million in 2023, according to figures obtained by the Financial Times.
Disrupting Traditional Banking Models
Launched in Nigeria in 2019, PalmPay entered a market where more than half of adults were unbanked and conventional banks prioritized salaried clients. PalmPay responded by creating a neobank tailored to the informal economy, featuring instant onboarding, zero transfer fees, and accessible financial tools. Its product suite spans digital payments, savings, credit, insurance, and utility bill services—all designed for everyday consumers and microbusinesses.
Hybrid Model Drives Distribution Success
What sets PalmPay apart is its hybrid acquisition model, which combines digital channels with a vast offline agent network. The company has built a network of over 1 million small businesses and merchants, serving over 10 million customers monthly through the PalmPay Business app and point-of-sale terminals. This dual approach has enabled it to become a top transaction processor, even surpassing traditional Nigerian banks, the company claims.
Strategic Partnerships Accelerate Adoption
A major factor in PalmPay’s rapid scale is its longstanding partnership with Transsion, the Chinese smartphone giant behind brands like Tecno and Infinix, which collectively hold over 40% of the African handset market. Through this collaboration, PalmPay’s app comes pre-installed on select smartphones, significantly boosting user acquisition. The fintech also partners with Transsion to offer device financing, a service it plans to expand further in Nigeria.
International Expansion Already Underway
PalmPay is already executing its global playbook, having expanded to Tanzania and, notably, Bangladesh—its first non-African market. In these countries, the company is leading with device financing and credit services, with plans to roll out broader offerings. It joins other African fintechs like FairMoney and TymeBank in exploring Asian markets, aiming to adapt its proven model across new geographies.
Business Services Gain Momentum
On the enterprise front, PalmPay is also gaining traction through its newly launched cross-border payments platform. Targeted at merchants operating across Africa, the service enables seamless payments via a single API and is already live in Nigeria, Kenya, and Tanzania, with South Africa next. The company states it is now handling “hundreds of millions of dollars monthly” through this channel.
Backed by Global Investors
PalmPay’s investor base includes not only Transsion but also global heavyweights like Singapore’s sovereign wealth fund GIC and Mediatek, a leading mobile chipset producer. While Transsion remains a key strategic ally, PalmPay is reportedly in talks with additional original equipment manufacturers (OEMs) to scale its hardware-linked distribution model. This signals a broader push toward partnerships that integrate fintech services into everyday consumer electronics.
With profitability achieved, strong user engagement, and a robust funding pipeline, PalmPay is well-positioned to extend its leadership in African fintech. Its ability to blend digital innovation with offline infrastructure has proved effective in capturing underserved markets. As it prepares to scale further into Asia and deepen its African operations, the upcoming Series B could mark a pivotal step in the company’s cross-continental ambitions.