Tyme Group secures $250 million, now valued at $1.5 billion

In South Africa, Tyme Group successfully raised $250 million in a Series D funding round, significantly increasing its valuation to $1.5 billion. The funding was primarily spearheaded by Nu Holdings, which owns Nubank, with an investment of $150 million for a 10% stake in the fintech company. Other investors contributing to this round included the M&G Catalyst Fund, which invested $50 million, and additional funds from existing shareholders. This financial boost comes after a challenging period for fintechs worldwide due to rising interest rates that slowed investor enthusiasm but marks a noteworthy revival in interest towards digital banking ventures. Tyme has achieved substantial growth, attracting approximately 15 million customers across its operational markets. The company is notably recognized for its South African brand, TymeBank, which alone accounts for around 10 million users. Founded by chairman Coen Jonker, Tyme Group is eyeing further international expansion, with plans to enter the Vietnamese and Indonesian markets next year. As part of its growth strategy, the company remains predominantly owned by African Rainbow Capital (ARC), with Patrice Motsepe’s firm maintaining a significant 40% ownership stake in the fintech. This funding round pushes Tyme's total capital raised to nearly $600 million, joining other African fintechs like Moniepoint in achieving unicorn status within the year. Nubank’s investment in Tyme aligns with its strategic aim to diversify its geographical exposure and tap into the burgeoning markets of Asia and Africa where digital financial services remain underdeveloped. The investment reflects Nubank’s belief in the potential of digitally-native companies and their capacity to scale within emerging markets that exhibit parallels to their own operational landscape—namely, large unbanked populations, rising smartphone penetration, and an increasing need for accessible financial products. David Vélez, founder and CEO of Nubank, expressed confidence in Tyme's positioning to become a leading digital bank in both Africa and Southeast Asia, highlighting their commitment to share knowledge and insights for scaling operations effectively. Looking ahead, Tyme is also considering a New York listing by 2028, illustrating its ambition to expand further into international capital markets. The successful funding round could mark the beginning of a new chapter for Tyme as it integrates these investments into its growth strategy while tackling the challenges present in the fintech industry during this period of economic uncertainty.