Tyme Group, a pioneering digital lender backed by South African billionaire Patrice Motsepe, has joined the exclusive ranks of African unicorns after raising $250 million in its latest funding round. The capital injection values the company at $1.5 billion, marking a significant milestone for the continent’s fintech landscape.
The funding round attracted global heavyweights, including a $150 million investment from Nu Holdings Ltd., Latin America’s largest financial institution. Known for its flagship Nubank, the world’s biggest standalone digital bank with over 110 million customers in Brazil, Mexico, and Colombia, Nu Holdings’ participation signals strong confidence in Tyme’s business model. “This is a unique vote of confidence in our business by world leaders in our industry,” said Coenraad Jonker, Tyme’s CEO and co-founder, in an interview with Bloomberg.
Other notable contributions to the funding round include $50 million from M&G’s Catalyst fund, while existing investors such as Tencent Holdings Ltd., the Gokongwei Group, and Norrsken22 added another $50 million. African Rainbow Capital Investments Ltd. (ARC), Motsepe’s investment vehicle, remains the largest shareholder with a 40% stake. Tyme’s standing as South Africa’s only Black-owned and Black-controlled commercial bank is unchanged, Jonker emphasized.
Tyme’s rise to unicorn status comes amid a revival of investor interest in fintech, following a period of turbulence driven by global interest rate hikes. Headquartered in Singapore, the group operates as TymeBank in South Africa, where it has amassed more than 10 million customers. In the Philippines, Tyme collaborates with the Gokongwei Group under the GoTyme brand, contributing to its collective customer base of over 15 million. Tyme also launched merchant cash advances in Vietnam earlier this year and is laying the groundwork for operations in Indonesia.
“Job number one is to become the top retail bank in the Philippines,” Jonker stated, “and the next job is to repeat that in Indonesia.” Tyme aims to secure an Indonesian banking license through strategic acquisitions, with the chairman indicating readiness to spend tens of millions of dollars to achieve this.
The bank faces stiff competition in Southeast Asia, where incumbents such as Bank Mandiri and Bank Rakyat Indonesia dominate, alongside emerging players backed by the region’s leading tech companies. However, Tyme is betting on its proven model of combining digital banking with a physical presence to capture market share.
TymeBank’s rapid growth in South Africa has been driven by partnerships with retail giants and an extensive network of over 1,000 kiosks and 15,000 retail points. With a customer base of 10 million as of September 30, 2024, and a robust 74% activity rate, the bank has achieved sustainable profitability — a rare feat for an early-stage fintech.
“Reaching profitability within five years underscores the effectiveness of our model,” said TymeBank CEO Karl Westvig, who took over the role on October 1. “Our mission is to empower South Africans, particularly small and medium-sized enterprises (SMEs), to achieve financial stability and growth.”
The acquisition of Retail Capital in 2022 has been instrumental in this mission, enabling TymeBank to disburse over R12 billion ($600 million) to more than 80,000 SMEs. By leveraging advanced artificial intelligence (AI) for credit assessments, the bank has enhanced its ability to serve underserved communities while maintaining sound risk management practices.
Tyme’s international ambitions were earlier supported by its Series C funding, which raised $77 million from investors including Norrsken22 and Blue Earth Capital last year. In the Philippines, GoTyme has attracted 4.4 million customers within just two years. Tyme’s entry into Indonesia, Southeast Asia’s largest economy, is a cornerstone of its global strategy, alongside its recent expansion to Vietnam.
This Series D funding round, expected to raise $150 million, has now surpassed expectations. The funding will solidify Tyme’s unicorn status and provide resources for further scaling and innovation. The bank has also announced plans to list on the New York Stock Exchange by 2028, with a secondary listing on the Johannesburg Stock Exchange to cater to its South African shareholder base.
TymeBank’s ascent now makes the fintech industry in Africa a force to be reckoned with, having produced eight out of nine African unicorns to date. By combining digital innovation with physical access points, the bank has created a model that resonates in underserved markets. Its success reflects a broader shift toward digital-first financial services, with strong backing from global investors and a commitment to inclusion. The company joins the growing list of unicorns in Africa, including Moniepoint, Flutterwave, MNT-Halan, Chipper Cash, among others.