South African fintech, Tyme Group, has raised $250 million in a Series D funding round, boosting its valuation to $1.5 billion. This milestone establishes Tyme as one of Africa’s few unicorns in 2024, alongside Nigeria’s Moniepoint.
The funding round was led by Nu Holdings, the parent company of Latin America’s leading fintech, Nubank, which invested $150 million for a 10% stake in Tyme. Additional investments included $50 million from the M&G Catalyst Fund and $50 million from existing shareholders.
Innovative Banking Model Drives Growth
Founded in 2019, Tyme Group operates a hybrid digital banking model that combines online banking with physical service points. Headquartered in Singapore, the company focuses on building scalable digital banking solutions in emerging markets. Tyme currently serves 15 million customers across South Africa and the Philippines through its two brands, TymeBank and GoTyme.
TymeBank, which has attracted 10 million users in South Africa, has been instrumental in the group’s rapid growth. GoTyme, launched in 2022 in collaboration with the Gokongwei Group, has gained 5 million users in the Philippines.
The fintech reports over $400 million in customer deposits and has provided more than $600 million in financing to small businesses across its two markets. It plans to expand into Vietnam and Indonesia in 2025.
Strategic Investment from Nubank
For Nubank, this investment aligns with its strategy to diversify beyond its core markets in Latin America. Having established a strong presence in Brazil, Mexico, and Colombia, Nubank is exploring new opportunities in emerging markets outside Latin America.
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“Since the beginning of Nubank, we have believed that the future of financial services globally is of digitally-native companies. We think Tyme Group is well-positioned to be a digital banking leader in Africa and Southeast Asia,” said David Vélez, Nubank’s founder and CEO.
This isn’t Nubank’s first venture outside Latin America. In 2021, the Brazilian fintech invested in Indian neobank Jupiter.
Future Prospects
Tyme Group’s Series D round brings its total capital raised to nearly $600 million. The fintech remains majority-owned by Patrice Motsepe’s African Rainbow Capital (ARC), which holds a 40% stake.
Chairman Coen Jonker has hinted at plans for a public listing, targeting an IPO in New York by 2028, with a secondary listing in South Africa.
The latest funding comes as a sign of renewed investor confidence in fintech, following a global slowdown caused by rising interest rates. Tyme’s success underscores the growing appeal of digitally-native financial services in emerging markets, setting the stage for further growth in Africa and Southeast Asia.
