Africa-focused fintech company PalmPay is reportedly preparing for an initial public offering (IPO) in Hong Kong while pursuing a private funding round that could raise about $200 million and push its valuation beyond $1 billion.
According to a recent Bloomberg report, the planned fundraising would give PalmPay unicorn status, making it one of the few African fintech companies to achieve a valuation of more than $1 billion.
PalmPay’s potential move into the public markets comes as rival Nigerian fintech firm OPay also explores plans for a listing.
OPay has reportedly appointed global banking giants Citigroup, Deutsche Bank, and JPMorgan Chase to advise on a proposed United States IPO, with the company targeting a valuation of about $4 billion. The move follows a securities filing by early investor Opera, which valued OPay at $3.1 billion in April.
The potential listings by both companies could provide a key measure of global investor confidence in African fintech firms, especially at a time when another African unicorn, Flutterwave, has temporarily delayed plans for its own public offering.
PalmPay and OPay are among the leading digital finance platforms in Nigeria, Africa’s largest digital economy, competing across consumer payments, agent banking, and point-of-sale (PoS) services. Both companies have built large user bases as demand for digital financial solutions continues to grow across the continent.
PalmPay began operations in Nigeria in 2019 after securing a $40 million seed investment from major Chinese investors, including Transsion, NetEase, and MediaTek.
The company later raised $100 million in a Series A funding round in 2021 from institutional investors such as AfricInvest, Chuangshi Capital, and Trust Capital.
Since then, PalmPay has expanded its financial services offering to include money transfers, bill payments, and merchant solutions. Its ecosystem operates through its consumer-facing app and the PalmPartner merchant platform, which supports businesses using its payment services.
OPay, which initially launched as a multi-service platform offering ride-hailing, food delivery, and e-commerce services, later shifted its focus towards digital payments.
The company now serves more than 50 million users in Nigeria and processes more than $12 billion in monthly transactions, strengthening its position as one of the country’s largest fintech operators.
Beyond its organic growth, OPay could benefit further from recent regulatory changes introduced by the Central Bank of Nigeria (CBN), which require point-of-sale (PoS) agents to operate exclusively with a single financial institution.
Industry analysts believe the policy could strengthen OPay’s position in the agent banking sector due to its extensive agent network and established market presence.
However, despite growing speculation around their fundraising efforts and IPO ambitions, neither PalmPay nor OPay has officially confirmed timelines for their proposed listings.
Details including potential launch dates, final fundraising amounts, and exchange registrations remain unconfirmed.
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