PalmPay, the African digital banking fintech, is reportedly in discussions to raise between US$50 million and US$100 million in a Series B funding round, according to sources cited by TechCrunch.

The round is expected to comprise both equity and debt financing.

While valuation targets have not been disclosed, PalmPay’s 2021 fundraising placed it just below unicorn status.

Founded in Nigeria in 2019, the company has raised nearly US$140 million to date and is now said to be profitable.

A PalmPay spokesperson declined to comment directly on the fundraising but noted that the company is “in a strong financial position and exploring growth opportunities.”

The new capital is intended to support PalmPay’s expansion within Nigeria, the scaling of its business-focused offerings, and its entry into new markets across Africa and Asia.

The neobank recently launched in Tanzania and Bangladesh, initially offering device financing and credit products, with plans to introduce additional services in due course.

PalmPay currently has 35 million registered users and processes 15 million transactions daily, amounting to “tens of billions” of dollars annually.

The company reported US$64 million in revenue for 2023, a figure that has more than doubled since, according to internal sources.

Its distribution strategy includes a network of over 1 million merchant agents and a pre-installation partnership with smartphone manufacturer Transsion.

Featured image credit: Edited by Fintech News Africa, based on image by Photo by Nupo Deyon Daniel via Unsplash