African neobank PalmPay is in discussions to raise between $50 million and $100 million in a Series B round, according to sources familiar with the talks.
The Lagos-based fintech, already profitable, is seeking new capital to scale operations across Africa and Asia.
Strong performance powers investor interest
PalmPay has raised nearly $140 million to date and is said to have surpassed $64 million in revenue in 2023—more than doubling since then. With 35 million registered users and 15 million daily transactions, the company processes tens of billions of dollars annually, outpacing traditional banks in Nigeria.
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Strategic partnerships and on-the-ground presence
Founded in 2019, PalmPay has benefited from a strategic partnership with Chinese smartphone giant Transsion, which pre-installs its app on popular devices. The company also relies on a vast physical network of over one million merchants and agents, servicing over 10 million users each month.
New markets and services in the pipeline
The fintech has expanded to Tanzania and Bangladesh, and plans to introduce device financing in Nigeria. On the enterprise side, it has launched cross-border payment APIs for merchants in Nigeria, Kenya, and Tanzania, processing hundreds of millions of dollars monthly.
Backed by global investors
Investors include Transsion, GIC (Singapore’s sovereign wealth fund), and chipmaker MediaTek. PalmPay is also actively seeking new hardware partners to drive further user acquisition.
With strong fundamentals and international ambitions, PalmPay’s potential raise could push it closer to unicorn status and establish it as a dominant fintech player across emerging markets.
