PalmPay, a profitable African fintech company, is in advanced talks to raise between $50 million and $100 million in a Series B funding round. The company, which operates a digital banking platform optimized for Africa's informal economy, offers services including instant onboarding, zero transfer fees, and a suite of financial products tailored to underbanked consumers and small businesses. This funding will fuel PalmPay's expansion into new African and Asian markets, scale its business-focused offerings, and deepen its presence in Nigeria.
PalmPay has already achieved significant milestones, boasting 35 million registered users and processing 15 million daily transactions, totaling tens of billions of dollars annually. Its revenue surged to $64 million in 2023, more than doubling from the previous year. The company's success is attributed to its hybrid model, combining a digital app with a vast network of over 1 million agent merchants.
The funding round is expected to include both equity and debt financing. While the exact valuation remains undisclosed, PalmPay's previous funding round in 2021 placed it among Africa's most valuable startups. Notable investors include Transsion (which led the seed round), GIC (Singapore's sovereign wealth fund), and Mediatek.
The company's expansion plans include introducing device financing in Nigeria and expanding its services in Tanzania and Bangladesh. PalmPay's business-focused offerings, including cross-border payments for merchants, are already processing hundreds of millions of dollars monthly.
