South African digital lender Tyme Group has raised $250 million in a Series D funding round at a $1.5 billion valuation, making it Africa’s ninth unicorn. This milestone comes just two months after Nigeria’s Moniepoint crossed the billion-dollar threshold.
The round was led by Nu Holdings, the parent company of Nu Bank, Latin America’s largest fintech, which contributed $150 million for a 10% stake. Other participants included M&G Catalyst Fund and existing investors, marking a resurgence of investor confidence in Africa’s fintech sector following a slowdown in global funding activity.
Key Highlights of Tyme’s Funding Round
- Fintech Dominance:
- Tyme’s valuation underscores the dominance of fintechs in Africa’s unicorn club, with seven out of nine unicorns coming from the sector.
- Global Investor Participation:
- The round reflects a continued reliance on global capital, as African growth-stage funding remains scarce.
- Nu Holdings’ involvement signals its strategic ambition to expand beyond Latin America into emerging markets like Africa and South Asia.
- Valuation and Strategy:
- Tyme Group’s valuation of $1.5 billion highlights the potential of its hybrid banking model in addressing underserved markets.
- Plans for an Initial Public Offering (IPO) are set for 2028, aiming to further scale its operations globally.
About Tyme Group
Founded in 2019, Tyme Group blends online banking with physical infrastructure, making it accessible to a diverse customer base.
Core Offerings:
- Checking and Savings Accounts: Accessible banking services for individuals and businesses.
- Debit Cards: Simplifying payments for consumers.
- Buy-Now-Pay-Later (BNPL): Offering credit solutions to customers.
Key Metrics:
- 15 Million Customers: Across South Africa and the Philippines.
- $600 Million in Financing: Extended to small businesses, supporting local economies.
- Global Expansion:
- Indonesia Launch: Plans to establish operations in Indonesia by the end of 2024.
- Future Markets: Targeting emerging economies in Africa and South Asia.
The Role of Nu Holdings
Nu Holdings, known for its success in Latin America, aims to replicate its fintech model in Africa. By acquiring a 10% stake in Tyme, Nu Holdings sees Africa as a high-growth market with significant opportunities in digital financial services.
“We see a lot of synergies in Tyme’s hybrid banking model and the success we’ve had in enabling financial inclusion across Latin America,” said a Nu Holdings representative.
Impact on Africa’s Fintech Landscape
Tyme Group’s rise to unicorn status reinforces fintech’s position as a key driver of innovation and investment in Africa.
Why This Matters:
- Boost to Investor Confidence:
- The $250 million raise signals a potential revival of funding for high-growth startups on the continent.
- Expanding Financial Inclusion:
- Tyme’s hybrid model is well-suited to address Africa’s large unbanked population by combining digital and physical access points.
- Competitive Positioning:
- With operations in South Africa and the Philippines, and plans for Indonesia, Tyme is poised to become a major player in emerging markets.
Shareholder Structure and Future Plans
- African Rainbow Capital Investments Ltd.: Remains Tyme’s lead shareholder with a 40% stake.
- Total Funding: The $250 million round brings Tyme’s total funding to approximately $600 million.
- IPO Plans: Tyme Group aims to go public by the end of 2028, leveraging its growing global footprint.
Conclusion
With its Series D funding and entry into the unicorn club, Tyme Group is positioned to redefine digital banking across emerging markets. Its success not only highlights the growth potential of Africa’s fintech sector but also underscores the importance of global investor participation in scaling African innovation.
As Tyme continues to expand into Indonesia and beyond, it will serve as a model for other African startups aspiring to tap into global markets.