TymeBank Becomes Unicorn
TymeBank Becomes Unicorn. Multi-country digital banking group Tyme today announced its Series D capital raise, which secured a total of US$250 million in funding. Significantly, Nubank, one of the world’s largest digital financial service platforms, with over 110 million customers, has joined its shareholder base, along with M&G’s Catalyst as the second new shareholder.
Tyme, which has its roots in South Africa, is one of the fastest growing digital banks in emerging markets, with over 15 million customers across South Africa and the Philippines. TymeBank, with its 10 million customers, is the group’s flagship bank and the first digital bank to reach profitability in Africa.
The Nubank partnership brings significant expertise and resources to Tyme, positioning the company well to expand its market presence. “Nubank transformed financial services in Brazil. 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,” said Coen Jonker, Founder and CEO of Tyme Group
David Vélez, Founder and CEO of Nubank, added: “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 extremely 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.”
Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, commented: “Investing in innovative companies like Tyme Group is essential for driving financial inclusion in underserved markets. This partnership exemplifies M&G’s Catalyst mission to support transformative initiatives that create lasting social impact. By leveraging technology for accessible financial solutions, we are addressing the needs of the communities traditionally excluded from the financial system and building a more inclusive financial ecosystem.”
Karl Westvig, CEO of TymeBank, Tyme Group’s flagship bank in South Africa, highlighted: “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, including GIC, Berkshire Hathaway and others, helps pave the group’s path towards a potential listing by 2028.”
Commenting on the Nubank partnership, Patrice Motsepe, Chairperson of major shareholder African Rainbow Capital, said: “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.”
The oversubscribed Series D capital raise was led by Nubank, which invested US$150 million, with M&G’s Catalyst subscribing for US$50 million. Existing shareholders are investing a further US$50 million. The transaction will see ARC and Apis Growth Fund II (‘Apis’) remain as the largest and second largest shareholders respectively. Tyme’s other investors includes the Founders, The Ethos AI Fund, Tencent, The Gokongwei Group, British International Investment (BII), Norrsken 22, Blue Earth and Lavender Hill Capital Partners.
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 fast-growing group. “We are proud to join the elite club of African Unicorns, and this achievement serves to fuel our team’s ambition to be listing-ready in the next four to five years,” said Westvig.
