Fintech company PalmPay seeks potential $100 million investment as it expands operations beyond Nigeria
PalmPay, one of Africa's most-used fintech apps, is reportedly in talks to raise between $50 million and $100 million in a Series B funding round. This funding, if successful, will support PalmPay's expansion within Nigeria, scale its business services, and enter new markets across Africa and Asia.
With over 35 million registered users and processing approximately 15 million transactions daily, PalmPay has already made significant strides in the digital banking and payments sector. The app, pre-installed on financed phones from Transsion, Africa's top smartphone maker, has aided mass-market adoption.
The Series B funds will be used to deepen PalmPay's Nigerian footprint, scale its business-facing products, and expand across Africa and Asia. This expansion strategy follows PalmPay’s recent growth, including launches into Tanzania and Bangladesh, where it is piloting credit products and device financing.
PalmPay's network of agent merchants exceeds 1 million, and around 25% of its users opened their first-ever financial account with the platform. The annual transaction value for PalmPay is in the "tens of billions."
In addition to its current operations in Tanzania and Bangladesh, PalmPay plans to introduce device financing in Nigeria and roll out cross-border payments for merchants, currently processing hundreds of millions monthly. For credit users on PalmPay, 60% reported it as their first loan experience.
PalmPay leads with device financing and consumer credit in the markets it operates in. The company is also preparing to replicate its hybrid model in more emerging markets across Africa and Asia. Notably, PalmPay's 2023 revenue was $64M and has more than doubled since.
PalmPay's expansion plans align with its broader efforts in the cross-border space. The company is offering a multicurrency wallet that currently supports pounds and euros, with plans to add U.S. and Canadian dollars within six months.
Despite its rapid growth, PalmPay remains profitable. To date, the company has already raised nearly $140M in seed and Series A funding. With the upcoming Series B funding, PalmPay is preparing to go global.
- With the Series B funds, PalmPay intends to further its venture into technology, potentially developing more business-facing products to deepen integration within the digital banking and payments sector.
- As PalmPay moves towards global expansion, it plans to leverage technology to enter new markets, specifically in Asia, offering cross-border payments and device financing, following the success of its hybrid model in Africa.
