PalmPay has sought about USD 200 million in funding ahead of a potential Hong Kong listing, Bloomberg has reported.
The funding round would value the company at more than USD 1 billion, giving PalmPay unicorn status.
Talks are ongoing, and the fundraising amount, valuation, and IPO plan may still change. PalmPay has not set a listing date or named banks for a potential share sale. A Hong Kong listing would give the company access to Asian investors as it continues to expand across Africa and South Asia.
The plan follows PalmPay's decision to base its multi-market operations in Hong Kong. The company signed an agreement with Hong Kong's Office for Attracting Strategic Enterprises, a body that supports companies establishing a presence in the city. The base places PalmPay closer to its Asian shareholders and to new sources of capital.
PalmPay began operations in Nigeria in 2019 after raising USD 40 million from investors led by Transsion, the manufacturer of the Tecno, Infinix, and Itel phone brands. Other backers include NetEase and MediaTek. The company raised a further USD 100 million in 2021 and has secured about USD 140 million in funding since launch.
Valuation to be tested against public markets
A valuation above USD 1 billion would place PalmPay alongside other African fintech unicorns, including OPay, Flutterwave, and Moniepoint, though a private valuation does not guarantee an equivalent value on a public exchange. Any listing would require PalmPay to disclose revenue, profit, customer activity, costs, and risk data across each market it serves.
PalmPay's choice of Hong Kong reflects its ownership structure and business links. Transsion, NetEase, and MediaTek are all based in Asia, while PalmPay's user base sits in Africa and South Asia. A Hong Kong base could connect these parts of the business and provide access to investors familiar with payments and consumer-technology companies. A listing could also offer an exit route for early shareholders and give PalmPay shares to use for acquisitions or staff compensation.
The company continues to face risks tied to regulation, fraud, currency fluctuations, and competition in Nigeria, its largest market. Distribution through Transsion handsets has supported customer acquisition, though public investors would assess whether these users generate sustained profit and remain active over time.
