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Profitable African fintech PalmPay is in talks to raise as much as $100M
PalmPay, a profitable African fintech, is in discussions to raise $50M to $100M in a Series B funding round, aiming to expand its operations in Nigeria and other markets while leveraging its strong financial position and user base of 35 million. The company has processed 15 million daily transactions and doubled its revenue to $64M in 2023, making it one of Africa's most valuable startups.
Key points
- PalmPay seeking $50M to $100M in funding to finance expansion.
- Last funding round in 2021 brought it close to unicorn status.
- Raised nearly $140M across seed and Series A rounds.
- Profitable with 15 million daily transactions from 35 million registered users.
- Revenue of $64M in 2023, doubled from previous periods.
- Plans to expand in Nigeria and other African/Asian markets.
- Offers instant onboarding, zero fees, and services aimed at underbanked users.
- Built a network of over 1 million small businesses for distribution.
Why it matters
- Connects to the trend of fintech growth in Africa, addressing the needs of the unbanked.
- Highlights the hybrid model adopted by emerging fintechs combining digital and physical touchpoints.
- Illustrates the increasing investment in African startups as they reach profitability.
- Aligns with predictions of a surge in neobanking and digital integration in emerging markets by 2025.
PalmPay's ongoing growth and profitability highlight the potential of fintech in Africa, reflecting a broader trend of digital banking transformation, set to shape financial services in emerging markets by 2025.