PalmPay, the fast-growing African fintech firm, is reportedly in advanced talks to raise between $50 million and $100 million in fresh funding. This marks a significant new phase in its growth as it plans to expand aggressively across Africa and into Asia.
Sources familiar with the deal say the raise will combine both equity and debt. While the company has not confirmed its target valuation, its last raise in 2021 positioned it just below unicorn status. The company declined to comment on valuation but said it’s in “a strong financial position and exploring growth opportunities.”
PalmPay has already secured nearly $140 million in previous funding rounds and, more notably, is now profitable. Insiders say the new round will support its ongoing expansion, particularly in Nigeria and new markets like Tanzania and Bangladesh.
Daily Transactions Surge as Business Tools Roll Out
Last month, PalmPay announced it processes over 15 million daily transactions, fueled by a user base of 35 million registered users. According to the company, these activities now total “tens of billions of dollars” annually.
Revenue growth has followed the same trend. The Financial Times reported that PalmPay earned $64 million in revenue in 2023, and insiders claim that figure has more than doubled in 2024.
Launched in Nigeria in 2019, PalmPay set out to serve the underbanked population in Africa’s informal economy. It quickly stood out with instant onboarding, no transfer fees, and services like savings, credit, and insurance, all via mobile.
But its biggest strength lies offline: PalmPay built a physical agent network of over 1 million merchants and small businesses. These agents use PalmPay’s point-of-sale devices and business app to reach over 10 million customers every month.
Financial Report: Africa Mobile Payments & Transactions Report 2025: Trends, Data, and Market Insights
Partnership with Transition and Move into Asia
A major driver behind PalmPay’s fast adoption is its partnership with Transsion, the maker of Tecno and Infinix phones. These smartphones dominate the African market, and PalmPay’s app comes pre-installed on many of them.
PalmPay has since expanded to Tanzania and Bangladesh, offering consumer credit and device financing as entry points. The company is also preparing to roll out device financing in Nigeria.
PalmPay’s business offerings are also gaining ground. It recently launched cross-border payments for merchants, currently active in Nigeria, Kenya, and Tanzania, with South Africa next. This service already handles hundreds of millions of dollars each month.
Investors in PalmPay include Transsion, GIC (Singapore’s sovereign wealth fund), and MediaTek. The company is also exploring new partnerships with other phone manufacturers to deepen its reach.
With profitability achieved and millions of loyal users, PalmPay is now aiming to become a major player not just in Africa, but beyond.
