Tyme Group, a home-grown digital banking group controlled by African Rainbow Capital (ARC), has reached unicorn status, with a $1.5 billion (R26.7 billion) valuation.
This, after securing $250 million (R4.4 billion) in the latest capital raise, the firm announced.
According to a statement, the multi-country digital banking group’s Series D capital raise was led by Nubank, one of Latin America’s largest digital financial service platforms with over 110 million customers.
Nubank has now joined Tyme Group’s shareholder base, along with investment firm M&G’s Catalyst, as the second new shareholder.
Tyme, which has its roots in SA, is one of the fastest growing digital banks in emerging markets, with over 15 million customers across SA and the Philippines combined. TymeBank, with its 10 million customers, is the group’s flagship bank.
Coen Jonker, founder and CEO of Tyme Group, says the Nubank partnership brings significant expertise and resources to Tyme, positioning the company well to expand its market presence.
“Nubank has transformed financial services in Brazil,” says Jonker. “We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme particularly in areas such as data analytics, credit risk management, product development and marketing – levers we believe are key to achieving leadership in our markets. This is a moment of great significance for Tyme.”
Tyme Group is a multi-country digital banking group focused on serving consumers and SMEs in emerging markets. It holds an effective 57.7% stake in TymeBank, which bills itself as SA’s first digital-only bank.
Headquartered in Singapore, with a technology and product development hub in Vietnam, Tyme designs, builds, and operates digital banks.
Following the launch of TymeBank in SA, Tyme Group launched its second digital bank, GoTyme, in the Philippines, in partnership with the Gokongwei Group in October 2022.
While Nubank invested $150 million, M&G’s Catalyst subscribed for a $50 million investment.
A consortium of existing shareholders are investing a further $50 million. Tyme’s other investors include: the Founders, The Ethos AI Fund, Tencent, The Gokongwei Group, British International Investment (BII), Norrsken 22, Blue Earth and Lavender Hill Capital Partners.
[PICTURE 2] Coen Jonker
[CAPTION 2] Coen Jonker, founder and CEO of Tyme Group.
Growing African unicorn circle
Commonly used in the venture capital (VC) industry, the term unicorn refers to a privately-held company with a value of over $1 billion, according to Investopedia.
According to Tyme, there are over 1 400 unicorns globally and only eight recorded in Africa. This latest milestone –underscores Tyme’s market potential and sets the stage for an exciting new era for the group.
The credibility and market visibility that comes with the affiliation with Nubank helps pave the group’s path towards a potential listing by 2028, it says.
David Vélez, founder and CEO of Nubank, adds: “Since the beginning of Nubank, we have believed that the future of financial services globally is of digitally native companies. We have met dozens of teams across different geographies, and we think that Tyme Group is well-positioned to be a digital bank leader in Africa and Southeast Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers.”
Commenting on the Nubank partnership, Patrice Motsepe, chairperson of major shareholder ARC, states: “As the long-term strategic shareholder in Tyme, we enthusiastically welcome the partnership with leading global digital bank, Nubank, as we are convinced this will lead to an even higher and significantly accelerated growth trajectory for the multi-country Tyme Group.”
Praveg Patil, head of Asia Pacific, impact and private equity at M&G, comments: “Investing in innovative companies like Tyme Group is essential for driving financial inclusion in underserved markets. M&G’s Catalyst is able to invest in transformative initiatives that create lasting social impact. Through this investment we are addressing the needs of communities that have traditionally been excluded from the financial system to build a more inclusive financial ecosystem.”
Karl Westvig, CEO of TymeBank, comments: “This funding will propel our growth strategy, enabling us to realise our stated goal of being a top three retail bank in South Africa in the next three years.
“Additionally, the enhanced credibility and market visibility that comes with the affiliation with Nubank, along with the large established networks of global investors, helps pave the group’s path towards a potential listing by 2028.”
Share