Tyme Group, a South African fintech, has recently closed a successful Series D funding round, securing $250 million in investment. This latest funding round has propelled Tyme Group’s valuation to an impressive $1.5 billion, marking a significant milestone for the company.
The funding was led by Nu Holdings, the parent company of Nubank, Latin America’s most valuable fintech firm. Nu Holdings made a substantial investment of $150 million, acquiring a 10% stake in Tyme Group. Additionally, M&G Catalyst Fund contributed $50 million to the funding round, with the remaining $50 million coming from existing shareholders.
Established in 2019, Tyme Group operates a unique hybrid digital banking model that combines online banking with physical service touchpoints. Headquartered in Singapore, Tyme Group focuses on developing and expanding digital banks in emerging markets, offering a range of financial services such as checking and savings accounts, debit cards, credit options including buy now, pay later schemes, and cash advances. The company boasts a customer base of 15 million across its primary markets in South Africa and the Philippines.
Tyme Group’s flagship brand, TymeBank, has amassed 10 million users in South Africa, driving significant growth for the company. In addition, its Philippine brand, GoTyme, launched in partnership with local conglomerate Gokongwei Group in 2022, has attracted 5 million users. Tyme Group has raised over $400 million in customer deposits and has extended more than $600 million in financing to small businesses in both markets. The fintech firm is now poised to expand its operations into Vietnam and Indonesia in the coming year.
Tyme Group remains majority-owned by Patrice Motsepe’s African Rainbow Capital (ARC), retaining a 40% stake in the company. The successful Series D funding round brings Tyme Group’s total capital raised to nearly $600 million, signaling a resurgence in investor interest in fintech companies following a period of slowdown influenced by rising global interest rates. Tyme Group now joins the ranks of African fintech unicorns, alongside Nigeria’s Moniepoint, marking a significant achievement for the company.
Looking ahead, Tyme Group is eyeing an IPO in New York by 2028, with plans for a secondary listing in South Africa. The company’s ambitious growth strategy is underpinned by its commitment to innovation and expansion into new markets.
For Nubank, the investment in Tyme Group aligns with its strategic goal of diversifying geographically and tapping into the growth potential of emerging markets outside Latin America. With over 100 million customers in Brazil, Mexico, and Colombia, Nubank is a dominant player in its core markets. However, the company recognizes the importance of expanding its presence in new regions to sustain long-term growth.
David Vélez, founder and CEO of Nubank, expressed excitement about the partnership with Tyme Group, noting that the African fintech is well-positioned to become a leader in digital banking in Africa and Southeast Asia. This collaboration will enable Tyme Group to leverage Nubank’s expertise in scaling digital banking operations to serve millions of customers effectively.
Tyme Group’s collaboration with Nubank represents a strategic move for both companies as they seek to capitalize on the opportunities presented by emerging markets. This partnership underscores the growing importance of digital banking in driving financial inclusion and innovation globally.
